The study examined the effects of cultural familiarity with a text on Chinese students' reading comprehension performance and reading time. In the first phase of the study, participants were required to read a culturally familiar text, write down the time they spent reading the passage, and immediately complete a cloze test without referring back to the culturally-embedded text. In the second phase, they went through the same procedure for a culturally unfamiliar text. Upon completion of the reading tasks, a topic familiarity questionnaire was distributed to them to complete in order to screen out those who were culturally familiar with both reading texts. A survey about their attitudes toward the role that background knowledge played in their reading process was administered to them following the topic familiarity questionnaire. The results showed that the students' reading comprehension performance and reading time were both significantly affected by their familiarity with the target culture. They spent less time on and comprehended better the culturally-embedded text they were familiar with. Analysis of the survey also substantiated the claim that they relied on the facilitative role of background knowledge in reading so as to read in a faster and more efficient way. The findings suggest that a reader's cultural schemata impacts memory, reading comprehension, interpretation and reading time. Pedagogical implications of the study and suggestions for future research are also discussed in the article. (Contains 3 tables.)