One of the major issues in peer-led discussion or in the literature circles has been the investigation of gender inequality in academic accomplishment. An action study was conducted in Fuchuan County, Hezhou, China, to determine whether narrowing the gender gap in literature circles might increase English as a Foreign Language (EFL) senior high school students' reading engagement in the classroom. In order to achieve this goal, the author made use of the literature circle in the process of studying with 43 EFL students in small classes for nearly one semester. Data was collected through surveys and interviews. The evidence leads researchers to conclude that changing the grouping structure, gender roles and reading choices can successfully narrow the gender gap in the literature circle and improve students' reading interest. Therefore, this paper enhances the practical understanding of literature circles in addressing the reading challenge of the gender gap in students' reading participation. As a suggestion for future research, it would be beneficial to carry out comparable investigations with students in other classes or in various schools.