This final paper explores the importance of picture books in the upbringing and education of preschool children. Picture books, as the first literary and visual medium children encounter, undoubtedly leave an indescribable impact on the lives of every child. The interplay between text and illustrations in picture books provides a holistic reading experience that promotes comprehensive child development and a love for books. The paper will provide a brief overview of the development of picture books throughout history worldwide and in Croatia, in order to depict the beginning of children's literature creation. In Croatia, the presence of numerous picture books by foreign authors is emphasized until 1927 when the first true Croatian picture book, "Dječja čitanka o zdravlju" (Children's Reader about Health), with the first Croatian illustrator and author, emerged. To highlight the influence of picture books on overall child development, the paper presents an overview of different types of picture books, their functions, and basic criteria for evaluating their quality. The development of early literacy represents a lengthy and complex process that begins within the child's initial environment and continues within educational institutions. In preschool, the prerequisite for fostering early literacy lies in providing a rich and stimulating environment, along with activities that encourage children's independent expression. Therefore, the paper emphasizes the role of educators in fostering pre-reading skills and provides specific examples of picture books used in educational work with preschool children.