SUMMARY The mental, social and emotional worlds of Australian children and families present particular challenges to early childhood teachers engaged in progressing child language and thinking. Teacher knowledge of family lifestyles and culture, and the ways in which children construe events is fundamental to the provision of sensitive, effective learning experiences. Early childhood teachers' efforts to link the social and educational worlds of families impact directly on how the children and families take part in formal educational activity. Although teachers espouse the rhetoric of good practice, they face significant challenges in translating this rhetoric into behaviour that ensures high quality outcomes for all children. Some Australian research suggests that early childhood teacher beliefs about good practice and teachers classroom behaviours need re-appraisal if the notion of ‘children as competent learners’ is to drive classroom action and be relevant to all students. Indeed, some of the communicative contexts established in early years classes appear to contraindicate successful outcomes for child thought and expression and do little to enhance children's social, intellectual and intrapersonal competence. The paper explores the context of the Australian child by reviewing contemporary research and reporting findings from several studies conducted in Western Australia. One study provides valuable insights into the health and well being of children in both family and school contexts. Two further studies investigated the early years classes from the perspective of children as they co-constructed their understandings with significant others. The paper describes the interactions played out in classrooms as well as the impact of these interactions on learners. In addition, the paper reviews current literature and research on quality assurance and best practice as it relates to the role of teacher in enhancing child thought and language. Strategies for increasing teacher effectiveness in developing child language and thinking are also explored.