This study investigated the impact of peer interaction enhancement on developing students' reading comprehension and students' grammatical knowledge and provided teachers, educators, curriculum designers and researchers with new insights to develop the English language teaching and learning field. Also, it added to the field of teaching English as a foreign language more techniques that help learners develop their language, especially at the basic stages. This study explored the impact of peer interaction enhancement on the reading comprehension and grammatical knowledge of sixth-grade Jordanian EFL students. It employed a quasi-experimental design, over a ten-weeks duration, one experimental group underwent a peer interaction enhancement intervention, while another group served as the control group, adhering to conventional teaching methods as outlined in the instructions of Action Pack 6 Teachers' Book. The study involved 60 female EFL students from two Al Mowaqqer schools, divided into an experimental group and a control group. The experimental group used a structured approach involving peer interaction techniques for reading comprehension and grammar lessons, with data collected through pre- and post-tests. The study utilized Reading Comprehension and Grammatical Knowledge tests, two-sample independent tests, and ANCOVA to collect data and analyze student scores to identify significant development due to the intervention. The study revealed that peer interaction improves reading comprehension and grammatical knowledge through communicative activities and corrective feedback. It emphasized identifying reading comprehension skills, providing grammar practice opportunities, and designing activities. Keywords: peer interaction enhancement, sixth grade Jordanian students, reading comprehension, grammatical knowledge.