This is an ethnographic study conducted in a first grade classroom where the learning environment was structured by a teacher using a whole language philosophy. The focus of the study was on the instructional and social organization of the classroom and how they influenced the literacy learning of Yaqui Indian students. This classroom was selected because it was reputed as providing an effective learning environment. The study was developed to investigate the discontinuity and mismatch theory. This theory suggests that the interactional styles, ways of learning, and experiences of Indian children in the home/community may not match those typically used in schools. These cultural differences may affect their learning in the classroom. Data was gathered through being a participant observer in the classroom during three school years; formal and informal interviews with the teacher, students, parents of the Yaqui students, and staff members; examination of school documents and records; a teacher-researcher dialogue journal; and the attendance of events in the school and community. The findings are presented through a description and interpretation of events in the classroom. They are based on the understanding of how one teacher organized the learning environment to accommodate the Yaqui students' experiences and cultural background while facilitating literacy learning. The findings incorporate the most recent theories of language organization of instruction, the social organization in the classroom, and the teacher interacted together to create a social context that contributed to the quality of learning and participation in the classroom. This is a case study of a classroom with a relatively unique population of students and a particular teacher. What can be generalized from this study to other classrooms is an understanding of the influence the instructional and social organization has on student learning and a methodology that can be used to study this issue. The learning theories, organization of instruction and social organization described can serve as an example for other teachers and illustrate the power of this methodology.