The purposes of the study were to determine whether phonic analysis training could be used to prepare children to be successful on the Auditory Analysis Test (AAT) of phonic skills and to then relate phonic knowledge to reading performance. Subjects were 40 first graders in suburban Pittsburgh who had attended kindergarten together. A group of 16 of the 40 children were judged not ready (NR) for reading. They were divided randomly into experimental (E) and control (C) groups and distributed equally in two classrooms with other children (R). Experimental group children received 37 auditory perception sessions for 15 to 20 minutes daily until all had mastered requisite skills. The AAT was administered to all 40 children, and comparisons were made between R and NR groups and between E anc C groups. Post-test results indicated significant differences between R and NR groups, between E and C groups, and between R and C groups, but not between R and E groups. Training apparently was effective in teaching phonic analysis skills necessary for successful performance on the AAT, and phonic skills were related to readiness. Tables and references are included. (MS)