This chapter focuses on the interplay of genes and the home environment in children’s reading development. We start by briefly explaining what the gene–environment correlations, r(G,E), and interaction mechanisms, GxE, are, and why they may cause serious problems in research that investigates how the characteristics of the home literacy environment (HLE) affect children’s reading development. We then describe research approaches that are currently used to confront the challenge posed by the GxE and r(G,E), with a special focus on the familial control method. Next, several examples of empirical research that have applied the familial control method are reviewed to illustrate its potential use. Finally, we discuss some ways forward in the field of research on HLE.