Children from low socioeconomic backgrounds (SES) are at increased risk of reading problems. Although phonological awareness consistently emerges as a critical literacy skill for children, little research exists regarding the effects of the acquisition of phonological awareness skills on decreasing the reading achievement gap between children of different SES levels. In this study, 50 first graders from low SES backgrounds were randomly assigned to receive 10 weeks of phonological awareness intervention or a control condition. In addition, 25 first graders from middle-high SES backgrounds served as a comparison group. A significant difference in phonological awareness skills was found between children in the low SES intervention group who received the phonological awareness intervention and similar children in the control group who did not receive the intervention. Reading skill differences between the low SES intervention and control groups were found at follow-up 24 weeks later but not immediately following intervention. Although the gap in reading skills of children from the low SES intervention group and the middle-high SES comparison group decreased, reading differences remained. Implications of findings with regard to prevention and identification of children at-risk for reading difficulties, as well as planning and implementing early literacy intervention for children from disadvantaged backgrounds are provided.