The availability of a first language translation equivalent (i.e., congruency) has repeatedly been shown to influence second-language collocation processing in decontextualized tasks. However, no study to date has examined how L2 speakers process congruent/incongruent collocations on-line in a real-world context. The present study aimed to fill this gap by examining the eye-movement behavior of 31 Arabic-English speakers and 30 native English speakers as they read 20 congruent and 20 incongruent collocations (in addition to 40 control phrases) in short contexts. The study also examined possible modulating effects of proficiency level and transparency on congruency effects. Results showed that non-natives (similar to native speakers) showed a processing advantage for collocations over control phrases. However, there was no effect of congruency (i.e., no difference between congruent and incongruent collocations) for either group, and no modulating effect of proficiency or transparency on congruency. We discuss implications of the findings for theories of L2 lexical processing.