The aim of this paper is to investigate the effectiveness of applying the Schema theory in interpreting speech acts as featured in the selected short stories by Alice Munro. This paper  starts with a description of reading process and the theoretical constructs surrounding it in relation to schemata. This study aims at exposing the effectiveness of previous knowledge structure (cultural, formal, gender, cultural, and linguistic) in interpretation of selected Stories by Alice Munro. The research is applied on Egyptian students (Girls and boys), who are enrolled in Egyptian schools, and Data used in analysis has been collected during schooldays. A presented questionnaire along with observation notes are analyzed in tables and graphs to identify clearly the investigated phenomenon and its effect in reading comprehension of speech acts. The research uses both qualitative and quantitative approaches in collecting and analyzing data, and concluding results. It is concluded that schema theory affects EFL students reading comprehension and speech act interpretation. Cultural and content schema affects reading comprehension higher than linguistic and formal schema, however, the integration of different schema types leads to a higher level of comprehension and recognition. Moreover, gender schema plays a great role in distinguishing the reading comprehension level among girls and boys.