Socio-emotional constructs have been receiving increased attention as contributors to children's literacy development. However, in comparison to positive socio-emotional constructs, negative socio-emotional constructs have been understudied with respect to their role in reading achievement in both dual language learners (DLLs) and English speakers (ESs). The present study addressed this gap by examining reading anxiety in 339 DLLs, who primarily spoke Spanish as their first language, and 178 ESs in Grades 3-5 using a latent variable approach. Structural equation modeling (SEM) was used to form latent variables for reading anxiety, reading engagement, and reading achievement, compare latent variable means for DLLs and ESs, and examine relations among the three focal constructs across the two language groups. The DLLs and ESs showed similar levels of reading anxiety and reading engagement, although the ESs showed stronger reading achievement. Further, for both DLLs and ESs, reading anxiety related negatively to reading achievement, both directly and indirectly through reading engagement, controlling for grade level. However, both the direct and indirect effects were greater for DLLs than ESs. In the discussion, we interpret these results in the context of theoretical views of the potential mechanisms linking reading anxiety and achievement, giving attention especially to the multidimensional nature of reading engagement and the possible role of stereotype threat. Based on the current findings and other recent research, we conclude by contending that reading anxiety merits increased scrutiny by researchers and educators endeavoring to understand and strengthen children's reading achievement. [This paper will be published in "Reading Research Quarterly."]