This PETAA paper discusses how the cross-curriculum priority concerned with developing Asia literacy, namely 'Asia and Australia's engagement with Asia', can be significantly advanced through the study of children's literature. The discussion proceeds from a brief overview of the historical development of Asia literacy to its current place with the Australian Curriculum. It then considers the potential of literature for assisting students and teachers in realising this priority through the Asian-Australian Children's Literature and Publishing dataset, a research project on AustLit. Finally, it discusses a small selection of texts - two picture books and a novel - with suggestions of prompts for raising students' intercultural understanding.