Alphabet of Dreams by Susan Fletcher

Mitra and her 5 year-old brother, Babak, are Persian refugees living in the City of the Dead - a series of caves in the cliff that rises above the ancient city of Rhagae. Mitra, who dresses as a boy to escape notice, lives by her wits, stealing food and other necessities as they wait for word of her older brother Suren, who has gone to find out what happened to the rest of their royal family.

Babak has dreams that are often prophetic and Mitra takes advantage of this gift, trying to make their lives in the caves a little easier as well as to raise enough money to get them to Palmyra where she believes her mother is. Instead, she is eventually betrayed to a traveling Magus, Melchior, who has heard of Babak's gift and wants Babak to dream only for him. Melchior takes the two with him in his caravan that is moving westward toward signs he has read in the stars. Eventually, the group meets up with two other Magi, Gaspar and Balthazaar, who are also interested in Babak's dreams and the bright star they are trying to follow.

This interesting tale tells the Christmas story of the three Magi who have read the stars, listened to Babak's dreams and are seeking the new king being born in Bethlehem. Told from Mitra's point of view, it is a beautifully rendered coming-of-age story of a young girl who is struggling to find her family and recapture her home.