This study examined the relations between reading-related cognitive skills and word reading development of Chinese children with dyslexia in their Chinese language (L1) and in English (L2). A total of 84 bilingual children-28 with dyslexia, 28 chronological age (CA) controls, and 28 reading-level (RL) controls-participated and were administered measures of word reading, rapid naming, visual-orthographic skills, and phonological and morphological awareness in both L1 and L2. Children with dyslexia showed weaker performance than CA controls in both languages and had more difficulties in phonological awareness in English but not in Chinese. In addition, reading-related cognitive skills in Chinese contributed significantly to the ability to read English words, suggesting cross-linguistic transfer from L1 to L2. Results found evidence for different phonological units of awareness related to the characteristics of the different languages being learned, supporting the psycholinguistic grain size and linguistic coding differences hypotheses.