The present research aimed to explore the developmental relationship between bilingual morphological awareness and reading for Chinese natives learning English as a foreign language (EFL learners). Pre- and post-tests were conducted with in an interval of 9 months. Morphological and reading measures in Chinese and English were administered to 139 participants. The results confirmed the intra-language correlations between morphological awareness and reading. The study also demonstrated that the contribution of English derivational awareness to English reading was higher than that of English compound awareness. Chinese compound morphology was found to explain a greater amount of variance of English reading in posttest than pretest. The results indicate the relationship between bilingual reading and morphological awareness was subjected to the similarities between the two languages in terms of morphological features as well as language proficiency.