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Abstract Literature has further linguistic, humanistic, cultural , and pedagogical benefits .Studying literature improves the literary responses of students as well as four skills of language that enable learners to communicate well. It stimulates people intellectually and emotionally. It takes people beyond their limited experience of life to show them the lives of other people at other times and places. Literature is divided into two major arts: verse and prose. Short story is a work of prose fiction that is meaningful in developing literary analysis skills of EFL / ESL students. As it makes the process of learning literature easy and enjoyable. In addition, it enhances the higher – order thinking levels of analysis and appreciation. In Egypt , the situation of teaching English literature in EFL contexts in general is dull and boring where teachers of literature apply ineffective strategies and techniques for analyzing literary work and most of the techniques for teaching literature are traditional and teacher – centered . More specifically, teaching literature at Egyptian universities has been dominated by lectures in which teachers dictate their own interpretation and analysis of literary works . Subsequently, many students depend on their teachers’ interpretations and their ready –made notes instead of analyzing their stories by themselves. Alternatively, small- discussion groups about literary texts has been cited as a useful way for students to deepen their understanding of text and to broaden their own range of potential literary analysis and interpretation. The potential benefits attributed to literature small dicussion groups startegy are consistent with claims made for integrating the reader response theroy principles and literature circle role tasks and group activities . Such groups provide a valuable forum for testing out of ideas and hypotheses and acquisition of new concepts and knowledge. In addition, work in small groups is said to afford greater responsibility for decision making to the learner and empower the learner to make new knowledge her own. During the literary discussions , the participants explore issues of common interest, clarify points from the reading, raise new questions, and relate what they have read to their own lives , as well as , they apply different role taks . Literature small discussion groups is one of the Literature-based instruction approach strategies in which authors’ original short stories and expository works are used as the core for experiences to support students in developing literary analysis skills. The types of activities done with the literature are the natural types of things learners would do when reading and responding to any story. Research clearly shows that small- discussion groups about literary texts helps all students become better readers, writers, and thinkers |