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The assessment of discourse skills in young children is an important responsibility facing clinicians today. Early identification of problems in discourse skills and, more specifically, narrative abilities is especially important for identifying children at risk for later learning and literacy-related difficulties. Despite this, few tools are available for assessing narrative skills in preschoolers. In this article we provide information concerning preschool narrative development in typically developing, North American, Caucasian, English-speaking children. Methods are suggested for assessing narrative skill of children with language impairment and children developing language normally. Transcripts of narratives from these children are presented, along with specific recommendations for evaluating these narratives.