While a number of studies have investigated the effects of Literature Circle on Taiwanese EFL learners reading comprehension (Lee, 2006; Shen, 2013), the effects of teacher praise on motivation during Literature Circles have gone largely unexplored. The current study investigates the effects of Literature Circle and teacher praise on learner motivation. Following a pre-test, treatment, post-test scientific design, participants completed a 15 item questionnaire and additional data was collected over the four week treatment period. Two forms of data analysis were integrated in the current study. Primary data analysis was restricted to examining differences in pre-test/post-test scores. Secondary data analysis was an ongoing process using Modified Analytic Induction (MAI) described by Bogodan and Biklen (2007). MAI was applied to group observations, analysis of the video recordings, participant participation, and worksheets which were turned in by each of the two Literature Circle groups. Participants were pooled from two English conversation groups and consisted of second year university students majoring in English in Taiwan. Findings of the primary quantitative analysis indicated that both groups made a number of changes in their responses to the questionnaire. However, these changes failed to provide evidence for a significant trend in the data. Despite a number claims found in related literature asserting the importance of praise in the L2 environment, no significant evidence was found in the present study to support this claim.