This document discusses discourse ability and its development from infancy through late childhood. It distinguishes between interactional discourse, which serves a social function, and transactional discourse, where communicating information is the main purpose. The ability to engage in transactional discourse develops during late childhood, as seen through a child's improved use of pronouns to refer to different characters unambiguously. Creating narratives also represents growing discourse skills, with older children able to tell stories that have elements like characters, plots, problems and resolutions.