As classrooms across the U.S. are becoming increasingly more multilingual and multicultural, there is a need for research that provides insight into literacy instruction that builds on students' linguistic knowledge. The qualitative study of a fourth-grade dual-language classroom examined the ways that peer mediation in Spanish and English impacted participation in literature discussion groups. The study findings indicated that in the discussion groups students developed forms of linguistic mediation, enabling them to take risks in using their language of lesser proficiency, and promote a higher level of engagement of members within the discussion groups. Literacy instruction that engages students in negotiating multiple languages and language forms enables bilingual students to demonstrate the depth of their communicative and linguistic knowledge, increases participation of all students, and challenges the hegemony of English.