This study explores the stability and progress of parents’ literacy beliefs and home literacy activities and their relationships with their children’s early literacy skills in their last year of preschool. Participants were 50 preschool children (M = 61.44 months) and their parents. Data collection sessions occurred in the family home in the fall and spring, with six months between them. At each time point, parents completed questionnaires regarding their beliefs relating to children’s literacy development, parents’ role in supporting literacy development, and the frequency of home literacy activities. We also evaluated the children’s early literacy skills (letter names, letter sounds, word writing, phonological awareness, and motivation for literacy activities). Results revealed overall stability in parents’ beliefs between the two time points, an increase in home literacy activities, progress in children’s early literacy skills, and greater motivation to engage in early literacy activities. We found a positive relationship between parents’ beliefs and home literacy activities in the fall with their children’s early literacy skills in the spring. Further, the progress in parents’ literacy beliefs between the fall and the spring correlated with their children’s progress in early literacy skills, controlling for parents’ education and children’s age. This study highlights the importance of promoting parents’ literacy beliefs and home literacy activities.