The current study investigated the capacity of a new test assessing phonological awareness to detect differences between Italian children with and without developmental dyslexia. Specifically, the task involves blending of a list of pseudo-words, and excludes lexical knowledge as a source of task performance. Fifty-four third to fifith Italian graders were presented a battery of tests assessing phonological awareness, reading, writing, and verbal short-term memory abilities. A multivariate analysis of covariance, with age as a covariate, revealed that proficient readers outperformed students with developmental dyslexia in all cognitive measures considered, except verbal short-term memory. Moreover, high concordance was found between the new pseudo-word blending task, and well-known word blending, writing, and reading tests, respectively. In conclusion, the new phonological awareness task seems to be a useful tool for the detection of poor blending abilities of Italian children and thus it could be used to screen phonological awareness in primary schools. Implications for school psychology research and practice, including across linguistic contexts, are emphasized; for example, the new blending task could aid discrimination of proficient and dyslexic readers speaking other languages characterized by a transparent orthography, such as Greek, Spanish, Turkish.