Description: In May 2003, Wilton Playcentre was designated as one of the first six early childhood education Centres of Innovation (COIs) that were established as part of the strategic plan for early childhood education to undertake action research over a 3-year period and “showcase excellence and innovation in ECE”. In this article the authors report an action research cycle undertaken early in the COI project: an investigation of adult–child and child–child interactions in relation to children’s schema fascinations and interests, within the domain of early literacy. They explore the issue of continuity between sessions and between playcentre and home, demonstrating how they came to give prominence and recognition to the child’s as well as the adult’s role in contributing to continuity.