Instruction in English as a foreign language at an early age is becoming more common worldwide even though the effects of this early instruction are not yet known. This study investigated the English and Chinese language performance of students enrolled in early English immersion in a Chinese primary school. In addition, factors that could predict successful English word recognition were investigated. There were 183 participants who were tested in both Chinese and English word identification, phonological awareness, and vocabulary, as well as English oral proficiency and letter name knowledge. The immersion students performed significantly better than the non-immersion group on measures of English vocabulary, word identification, and oral proficiency, without any detrimental effects on their Chinese character reading, which made the program, in effect, an additive bilingual system. In addition, phonological awareness and letter name knowledge proved to be strong predictors of English word identification for the immersion students, a finding that was similar to results obtained in studies of native English-speaking children. The findings have potentially useful pedagogical applications.