This study investigates the combined effects of preliteracy knowledge, formal schooling, and the summer vacation period on literacy acquisition in young learners. Preliteracy skills, including letter recognition, phonemic awareness, and vocabulary, serve as foundational elements that influence later reading success. The study examines how these skills, developed before formal education, interact with classroom instruction and are impacted by the break in formal learning during the summer months. Through a longitudinal analysis of a diverse sample of early learners, the research evaluates literacy progress across academic years and the summer period, identifying potential regressions and gains. The findings highlight the importance of early literacy interventions, continuous learning opportunities during breaks, and the role of structured schooling in supporting sustained literacy development. The study offers insights for educators and policymakers aiming to minimize learning loss during summer and enhance literacy outcomes through targeted strategies.