Purpose: To examine the relationship between phonological processing skills prior to kindergarten entry and reading skills at the end of 1st grade, in children with speech sound disorders (SSD). Method: The participants were 17 children with SSD and poor phonological processing skills (SSD-low PP), 16 children with SSD and good phonological processing skills (SSD-high PP), and 35 children with typical speech who were first assessed during their prekindergarten year using measures of phonological processing (i.e., speech perception, rime awareness, and onset awareness tests), speech production, receptive and expressive language, and phonological awareness skills. This assessment was repeated when the children were completing 1st grade. The Test of Word Reading Efficiency was also conducted at that time. First-grade sight word and nonword reading performance was compared across these groups. Results: At the end of 1st grade, the SSD-low PP group achieved significantly lower nonword decoding scores than the SSD-high PP and typical speech groups. The 2 SSD groups demonstrated similarly good receptive language skills and similarly poor articulation skills at that time, however. No between-group differences in sight word reading were observed. All but 1 child (in the SSD-low PP group) obtained reading scores that were within normal limits. Conclusion: Weaknesses in phonological processing were stable for the SSD-low PP subgroup over a 2-year period. (Contains 5 tables, 1 figure and 1 footnote.)