This paper focuses on the influence of socio-economic risk factors and different aspects of the home learning environment in early childhood on children's language competencies (vocabulary and grammar skills). The assumption is that children with more risk factors have lower competencies, but the home learning environment (measured by everyday activities at home and cultural activities) acts as a protective factor against risk. The data (n = 2406 children) are a sample of the German National Educational Panel Study (NEPS), which collects longitudinal data on a sample of four-year-old children starting in preschool. The regression models show higher levels of vocabulary and grammar skills for children with fewer socio-economic risk factors. This influence persists even after adding both indicators of the home learning environment. However, there is an additional small effect of the home learning environment on children's language competencies. Practical and policy implications of the study are discussed, especially against the background of the reduction of social disparities in Germany.