Children's lexical processing speed at 18 to 25 months of age has been linked to concurrent and later language abilities. In the current study, we extend this finding to children aged 36 months. Children (N = 126) participated in a lexical processing task in which they viewed two static images on noun trials (e.g., an ear of corn and a hat), or two dynamic video clips on verb trials (e.g., a woman stretching and the same woman clapping), and heard an auditory prompt labeling one of them (e.g., "Where is she stretching?"). They also participated in standard assessments of language and school readiness. The results indicated that lexical processing speed (i.e., how long they required to look to the labeled image or scene) was associated with measures of concurrent receptive vocabulary, as well as receptive vocabulary and school readiness two years later, although the associations are weaker than for younger children.