This chapter examines relationships between technology and literacy in the early years in the light of recent research in the field. It draws on a small group of studies that have investigated open-ended opportunities for young children aged 14 months to five years to use digital technologies to mediate meaning-making. It then examines how literacy is conceptualised in the early years and specifically highlights the significance of embodiment and materiality to meaning-making using digital technologies. It then argues that there is a need to know more about how children make meanings around new technologies, and that early literacy provision needs to build upon the kinds of understandings children develop in their home lives. However, the studies located do highlight some emerging areas of interest and concern suggests that they are significant for how relationships between literacy, technology and early years are framed. The chapter focuses on interactions with a YouTube video, with story apps on iPads, and with filmmaking.