The purposes of this research were 1) to describe the use of picture storybook, 2) to describe the 1st grade student learning outcomes in the reading skill and 3) to overcome the constraints faced in reading using picture storybook. This research used the Classroom Action Research (CAR) design. Subjects in this research were the 1st grade students of Kebonsari II/415 State Elementary School of Jambangan subdistrict Surabaya City amounted to 37 students. Instruments used for collecting the research data were in the forms of the teaching and learning activity implementation observation sheet, the student activity observation sheet and the student learning outcomes sheet. The results obtained in this research were that the teaching and learning activity implementation observation in cycle I achieved 77.7% which later experienced increase in cycle II to 91.6%. Student activity also experienced enhancement from 73.7% in cycle I to 90.3% in cycle II. So with the student learning outcomes completeness experienced increase from 75.2% in cycle I to 90.4% in cycle II. The constrains faced by the teachers less provide samples in reading. So in cycle I, the students are less fluent and less precise intonation in their reading. Due to substansdartd reading when doing the written test, many students could not do the test. Of the results obtained indicated that by the use of picture storybook could improve the fluent reading skill of the 1st grade students of Kebonsari II/415 State Elementary School of Surabaya.