We examined the developmental relationships between home literacy environment (parent teaching, shared book reading) and emergent literacy skills (phonological awareness, letter knowledge, vocabulary, rapid naming speed) in kindergarten, reading accuracy and fluency in Grade 1, and reading comprehension in Grades 2 and 3 in a sample of Canadian children learning to read English (N = 214). Results from a latent variable model showed that parent teaching predicted letter knowledge and phonological awareness, and shared book reading predicted vocabulary and rapid naming speed after controlling for family socioeconomic status. Moreover, both parent teaching and shared book reading contributed indirectly to reading accuracy and fluency in Grade 1, which then mediated the effects of home literacy environment on reading comprehension in Grades 2 and 3. The results suggest that the effects of home literacy environment on later reading development are distributed via more pathways than previously thought.