The chapter explores translanguaging as a theoretical concept for understanding communication, learning and teaching, as well as research of narrative and literacy practices in dual language practices in preschool. It presents the empirical data and methods, followed by an analysis of two book-reading activities. The chapter describes the concept of translanguaging for viewing the use of two or more languages as tools for communication and learning in relation to a book-reading activity and narrative elaboration in early childhood education. Translanguaging was shown to be integrated into home literacy practices. The language use of children and families was flexible and purposeful, and it expanded the children's linguistic repertoires in both languages. Multilingual literacy practice, or dual language learners' language and literacy development, is a fairly new field of research. The chapter deals with a discussion and conclusions about didactic consequences following from what is highlighted in the empirical study.