I bought this for my daughter, who is 4. I think the text is a little young for her, but it's a clear, simple version of the story. The best part is that it doesn't pile on the religious interpretations. It just tells the basic facts of the story: angel appears to Mary, Mary and Joseph prepare for the baby, donkey ride to Bethlehem, no room in the inn, Jesus born in stable, wise men follow star, angel appears to shepherds, we give gifts on Christmas "to show our love and to say Happy Birthday to Baby Jesus."
Now, I know for a fact that my daughter will ask WHY the angel appeared to the shepherds, etc., but this book gives us the chance to explain that in our own way. I bought this to go with the Fisher Price Little People nativity set to start explaining the story of Christmas, and I think they'll go very well together. (The nativity set doesn't have any shepherds, so we're planning to use the little farmer from her barnyard set! Hey, close enough.)