18 books were nominated in three categories ranging from younger and older readers to picture books.
Each category winner will take home a staggering £2,000 prize.
While one of the three will also be named Children’s Book of the Year, it will receive an additional £3,000.
Florentina Martin, water stones Head of Children’s said this year’s shortlist was chosen to “inspire readers” in an increasingly uncertain world.
Ms Martin said: “Offering varied perspectives on the themes of belonging and identity, the shortlisted books invite young readers to find solace in familiar communities, discover captivating new worlds or venture into the unknown, while being guided by unique, life-changing books and related characters.
The winners will be announced at a ceremony on March 31.
Waterstones Young Readers Shortlist
Reception – Kelly Yang
The story follows Mia and her motel-based Chinese immigrant family.
It will cost you £6.99 via the Waterstone website.
Bumble and Snug and the Angry Pirates – Mark Bradley
The first comic to make the shortlist, Bumble and Snug and the Angry Pirates shares lessons on friendship and controlling your anger.
The bookstore describes it as a “free-wheeling, superbly silly graphic novel” that tells the story of “two lovable Bugbops trying to escape a horde of crazed marauders”.
water stones recommend the comic to fans of Dog Man and Bunny vs Monkey.
The book is available for £6.99 and can be purchased through the Waterstones website.
Restricted list of older Waterstones readers
The Fire Keeper’s Daughter – Angeline Boulley
The exciting novel by Angeline Boulley follows the life of a young Native American woman as she deals with difficult questions about community, corruption and identity.
Waterstones dubbed the thriller an “engrossing and brilliantly nuanced start”.
Restricted list of Waterstones illustrated books
Grandpa Camper – Harry Woodgate
The story follows a grandfather who tells his granddaughter about the travel adventures he used to have in his youth with Gramps.
It was also the best school library journal book of 2021 and is the Bookseller’s Choice for a Father’s Day gift for Grandpa this year.
Who won the Waterstones Children’s Book of the Year award in 2021?
Some Kind of Spark – Ellie McNicol
The bookseller describes McNicol’s Novel as “beautifully judged and sprinkled with wit and compassion”, making it “a truly inspiring read”.
It follows the life of 11-year-old Addie as she campaigns for a memorial to the witch trials that took place in her Scottish hometown.
It won the Blue Peter Award for Best Story in 2021 and there’s a exclusive edition available which contains a letter from Elle to a younger self and the first chapter of her upcoming book Show Us Who You Are.