Literature for children reflects social views of childhood; thus, children's books need to be considered as products of their times. Prior to books, stories were told orally, giving enjoyment to adults and children alike. Early manuscripts were lessons for children as were the first books printed on movable type. Hornbooks and primers had instructions couched in moralism.

During 17th-century Puritanism, books reflected the moral spirit of the times. Children found enjoyment in chapbooks, nursery rhymes, and adventure stories. John Newbery's publication in 1744 of A Little PM Pocket-Book hailed the beginning of children's literature because it was deliberately published for children's amusement. The last half of the 18th century saw many women writers who produced didactic books, novels, and poetry-basing their work on the educational theories of Locke and Rousseau.

Although the 19th century began with strong moralism in books of instruction, family stories, poetry, and boys' series, the final part of the century flourished with books of realistic families, amusing poetry, and exciting adventures. Folktales were accepted for children, foreign settings appeared in realistic books, fantasy and humor proliferated, books with movable parts were created, magazines made important literary contributions, and illustrations of quality were prominent.

During the first half of the 20th century children's literature became recognized as a field. The picture book rose to prominence and informal books grew in number and quality. Series books for both boys and girls became very popular. Folktales came from all over the world and most poetry and fantasy books came from England. The second half of the century saw an increase in American writers of fantasy and poetry. Books of realism included minorities after the mid-60s and stories of families that were not idyllic appeared as "new realism" took over. An international literature began to develop.

Few books published before the 1970's accurately portrayed people other than white Americans. The growing movement for social justice and civil rights led to calls for children's literature that represents the diversity in our society. Over the course of the next thirty years, mainstream publishers began to pay more attention to multicultural literature and many awards for books by and about people of color were established. Multicultural literature is an umbrella term that includes world literature, cross-cultural literature, and literature from parallel cultures. The term "literature of diversity" encompasses literature that represents the diversity in our society, including the experiences of women, the elderly, people with disabilities, gay men, and lesbians. Today, children from many cultures can see themselves reflected in the pages of the books they read.

Recent trends show that the children's book industry is a major economic venture. There have been an increased number of mergers between publishing houses and large conglomerates. There are few independently owned publishing companies remaining. Although picture storybooks and picture-book formats have dominated the market in recent years, this trend may be coming to an end. Hardcover fiction, especially fantasy, is currently prominent. There is an increased emphasis on the visual, especially in the rise of graphic novels, interactive picture books, and toy books. Series books remain popular and movie tie-ins are on the rise. Celebrity authors are appearing on the best-seller lists. Many changes are taking place in writing and illustrating styles. Multimodal books with shifting points of view cross conventional genre lines. Technology advances have also encouraged experimentation with new tools for picture making. The use of trade books in schools as part literature-based reading programs remains common; however, an emphasis on testing and the systematic teaching of phonics endangers the continued use of literature and favors the use of textbooks. Community literacy programs incorporate an emphasis on the reading of children's literature. The Internet and the World Wide Web have had great impact on the world of children's books. Books are available on-line in digital form, and many authors have their own web sites. Children can enter chat rooms to discuss books with other readers from around the world. Today's youth are multiliterate.