Children with epilepsy are at increased risk for language and reading difficulties. Phonological processing and language underlie reading success, yet their association with reading achievement in children with epilepsy is unknown. We assessed phonological processing, oral language, and reading in children (ages 6 to 12) with epilepsy (EP; n = 6), language problems (LP; n = 14), and typical development (TD; n = 15). The EP and LP group had lower scores on all measures compared with the TD group, with the EP group scoring the lowest on reading comprehension. Phonological processing followed by epilepsy diagnosis predicted reading decoding. Language followed by epilepsy diagnosis predicted reading comprehension. Thus, reading problems in children with epilepsy are not fully explained by their phonological processing or language deficits. Further research that considers other cognitive processes important for reading (e.g., executive function) in this population may help inform our understanding of their reading success.