Listening comprehension involves the ability to understand and extract meaning from spoken sentences, stories, and instruction. This skill is vital for young children and has long-term effects on school achievement, employability, income, and participation in society. There is a lack of measures of young children's listening comprehension skills. We report on a new measure of listening comprehension (LURI) that we tested in a group of at-risk preschoolers. Using IRT (Item Response Theory) analysis, we examined the psychometric properties of the instrument. Moreover, in a series of regressions, we found that the LURI measure predicted a range of other language skills better than standardized measures. Thus, the LURI test is a reliable and valid measure of listening comprehension. Assessing listening comprehension is a time-effective way of measuring a skill critically important to language development and represents the product of a range of different oral language processes.