The study investigated the influence of literature circles strategy on the development of EFL students` oral fluency. Two intact classes (N=100) were chosen randomly during the first semester of the school year 2018-2019 from EFL third year preparatory students, Gharbia Governorate. The participants were assigned into an experimental group (N=50) and a control group (N=50). The students of the experimental group received instruction based on literature circles, whereas the students of the control group received regular instruction. The instruments of the study, prepared by the researcher, were a pre- post oral fluency test and an oral fluency scoring rubric. The two groups were tested before and after conducting the experimentation using the instruments. Data were analyzed using SPSS. The T- test for independent and paired samples was used in the study. Results indicated the positive influence of literature circles strategy on the development of EFL third year preparatory students` oral fluency. In the light of these results, implications, recommendations, suggestions for future research and conclusions were provided.