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These are the first books that I recommend to my seminary students:
Capon, Robert Farrar. Kingdom, Grace, Judgment: Paradox, Outrage, and Vindication in the Parables of Jesus (Eerdmans) 2002.
This is the book I recommend first to those preaching or teaching on the parables. You may not always agree with Capon, but you will always be encouraged to think about the parables anew.
Review by Graydon F. Snyder at Currents in Theology and Mission
Gowler, David B. What Are They Saying about the Parables? (Paulist Press) 2000.
An excellent introduction to the study of the parables including a historical overview as well as more recent approaches.
Chapter 6 from Gowler's own website.
Review by Michael Luper at Review of Biblical Literature
A Reading Guide to: Gowler What Are They Saying about The Parables.PDF (MGVH)
Hedrick, Charles. Many Things in Parables: Jesus and His Modern Critics (Westminster John Knox, 2004)
A helpful introduction summarizing the history of the study of the parables and a proposal for various interpretative strategies.
Links to Reviews at Review of Biblical Literature
A Reading Guide to: Hedrick Many Things in Parables.PDF (MGVH)
Hultgren, Arland J. The Parables of Jesus: A Commentary (Eerdmans) 2002.
This provides an encyclopedic approach to every parable. This is the place to start to get background information about any particular parable.
Review by Richard B. Vinson at Review of Biblical Literature
Reid, Barbara E. Parables for Preachers: Gospel of Matthew-Year A (Liturgical Press, 2001); Parables for Preachers: Gospel of Mark-Year B (Liturgical Press, 1999); Parables for Preachers: Gospel of Luke-Year C (Liturgical Press, 2000)
Nice surveys of the parables organized by the Revised Common Lectionary and oriented for preachers.
Brief Review by John T. Carroll at Interpretation.
Scott, Bernard Brandon. Re-Imagine the World: An Introduction to the Parables of Jesus (Polebridge Press, 2001)
A popularized and more concise edition of his insightful
Review by Dennis C. Stoutenburg at Review of Biblical Literature
Snodgrass, Klyne, Stories With Intent: A Comprehensive Guide to the Parables of Jesus (Eerdmans, 2008)
The most recent and (as the title states) comprehensive survey of Jesus' parables.
Review by Ernest van Eck at Review of Biblical Literature

Secondary Bibliography

The Parables of Jesus by Joachim Jeremias – One of the landmarks in the modern study of the parables.
In Parables: The Challenge of the Historical Jesus by John Dominic Crossan - A scholarly study but an artistic, reflective work as well.
Hear Then the Parable by Bernard Brandon Scott – An earlier and more comprehensive version of his Re-Imagine the World cited above. Introductory material is somewhat technical, but his exposition is fascinating and provocative.
The Challenge of Jesus’ Parables – Collection of essays edited by Richard N. Longenecker.
Interpretation 56.3, July 2002 – Journal theme is on the parables.
Matthew's Parables: Audience-Oriented Perspectives by Warren Carter and John Paul Heil – Provides good attention to both the social and literary contexts of the parables.
"Preaching the Parables" Part One and Part Two - Two brief essays by Arland Hultgren on

(Until this list gets more fully developed, also note the Bibliography provided by Eugene Hensell)

Revised:July 31, 2010 .