This study investigates the relationship between nonword repetition (NWR) and vocabulary in 2-year-olds. Questions addressed are whether (1) NWR and vocabulary are associated, (2) phonotactic probability affects NWR, and (3) there is an interaction effect between phonotactic probability and vocabulary on NWR performance. The general aim of the study is to investigate whether NWR, as a task of phonological storage, assesses the quality of phonological representations in children as young as 2 years of age. 557 Dutch 2-year-olds performed an NWR task containing items of varying phonotactic probability as well as a receptive vocabulary task. The results showed a moderate, significant correlation between NWR and vocabulary. Phonotactic probability had an effect on NWR performance. Further analyses showed that there was a significant interaction between phonotactic probability and vocabulary for part of the items. These results support previously reported effects of vocabulary and phonotactic probability on NWR in older, English-speaking children for a large sample of Dutch-speaking 2-year-olds, and provide evidence that NWR assesses the quality of phonological representations already in very young children.