This research aimed to explore the effects of story reading on first-grade students’ comprehension and retelling skills. A total of 30 first-grade students constituted the research sample. For this quasi- experimental research, the first-grade students were assigned to the treatment and comparison groups at random. In the treatment group, the stories were read to the students daily and after reading the stories, the informal conversations related to stories occurred. All the daily activities related the books read, which included efferent and aesthetic dimensions based on Rosenblatt’s transactional theory, lasted around half an hour. In the story conversations, it was focused on story elements including characters, setting, plot, conflict, and resolution and the effects of stories on the students. For the pretest and posttest assessment of the first-grade students, a grade-level story was read to the students in both two groups and asked each one of them to retell the story. In addition, after retelling the process, five Ws and one H technique were used to discuss the story and clarify comprehension levels of the students in the groups. This one-on-one assessment procedure was taken place for learning the awareness of the students on the story structure if the student retells orderly the events the story, the sentence structures of the students, and the students’ comprehension levels. The results of the research were discussed through the related literature and some profound implications of the research on first-grade students’ education were provided.