This qualitative phenomenological study explored the lived experiences, coping mechanisms, and a proposed intervention program regarding interactive literacy activities among ten (10) purposively selected Grade Two teachers from the Talomo-West District, Division of Davao City. It examined their instructional experiences, classroom barriers, and coping strategies in implementing early literacy instruction. Data were gathered through semi-structured in-depth interviews and analyzed using thematic analysis. Findings revealed four major themes characterizing teachers' experiences: instructional adaptation strategies, resourcefulness and material innovation, collaborative and professional support, and classroom management and engagement strategies. Teachers demonstrated flexibility through differentiated instruction, scaffolding, and flexible pacing; creativity through material improvisation; collaboration through peer sharing and mentorship; and structured classroom management. Coping mechanisms reflected similar patterns, highlighting reliance on personal resourcefulness and peer networks to address diverse learner needs. Based on these insights, a school-based capacity-building program titled Empowering Grade 2 Teachers in Interactive Literacy Instruction was proposed to systematize basic early reading pedagogy.