The relative importance of internal and external letter features of words in children's developing reading was investigated to clarify further the nature of early featural analysis. In Experiment 1, 72 6-, 8-, and 10-year-olds read aloud words displayed as wholes, external features only (central features missing, thereby preserving word shape information), or internal features only (central features preserved). There was an improvement in the processing of external features compared with internal features as reading experience increased. Experiment 2 examined the processing of the internal and external features of words employing a forward priming paradigm with 60 8-, 10-, and 12-year-olds. Reaction times to internal feature primes were equivalent to a nonprime blank condition, whereas responses to external feature primes were faster than those to the other two prime types. This advantage for the external features of words is discussed in terms of an early and enduring role for processing the external visual features in words during reading development.