This study investigated how well second language (L2) readers of English use context to identify proper names as such. It represents a first step in exploring a widely held assumption that L2 readers of English can easily identify proper names by their form and function. The study isolates the issue of function to investigate whether context alone allows identification of proper names. Context may be especially important to the identification of proper names for readers processing a different orthography from their first language (L1), as there is no research indicating that the initial capital letter on English proper names facilitates proper name recognition in L2 readers. Japanese L2 low intermediate readers of English (N = 61) were given sentences in lower-case letters. Target items had a proper name usage and a common word meaning (e.g. Rose, rose). Participants were asked to identify proper names by changing lower-case letters to upper case. Participants correctly identified target proper names in 28% of cases. The findings contradict an assumption in L2 reading and vocabulary research that proper names are easily understood from context. Implications for research and pedagogy are discussed.