Although previous research shows that the use of rhyme in early language stimulation has a positive impact on children’s sign language development, this area of sign language acquisition has not been adequately researched. 90% of deaf children are born to hearing parents who barely know sign language before their child is born, and yet they are the primary language role models in their child’s life. As L2 sign language users, hearing parents of deaf children teach language skills in their L2 to their deaf child who acquires sign language as one of their L1s. In this article, we focus on the potential application of the Icelandic Sign Language (ÍTM) handshape inventory in both early language intervention with signing children and in teaching ÍTM as an L2. We argue that the handshape inventory can be used as a teaching tool when teaching sign language as M2L2 to hearing adults and as a visual language stimulation tool for signing children (M1L1 or M2L1). The main purpose of using the handshape inventory is to raise phonological awareness of signing children and adults learning sign language. This can be done by explicitly teaching handshapes to adult learners and using signed rhymes in early language stimulation.