Background and Aims: Morphological awareness is an essential ability for successful reading. This study aimed to explore the contribution of morphological awareness to reading comprehension (RC) in Chinese. Particularly, this study sought to determine whether the relation between morphological awareness and RC differs across various facets of morphological awareness (homophone awareness, homonym awareness, and compounding awareness), grades, or ability levels. Samples and Methods: A total of 148 Chinese students were evaluated on a battery of tests from third to sixth grade. Multiple regression analyses were used to examine the unique roles of homophone, homonym, and compounding awareness on RC in different grades. Quantile regression analyses were conducted to investigate the more or less influences of facets of morphological awareness on RC across the ability range. Results: A series of multiple and quantile regressions revealed that: (1) compounding awareness rather than homophone awareness and homonym awareness, directly and uniquely explained the development of RC; (2) the effect of compounding awareness on RC increased with grade level; and (3) the contribution of compounding awareness to RC decreased as children move from poor to better readers. Conclusions: The findings reveal a developmental shift in the relation between morphological awareness and RC, as well as clarify when and for whom to enhance which facet of morphological awareness is particularly important.