This study examined the roles of speech perception and phonological processing in reading and spelling acquisition for native and nonnative speakers of English in the 1st grade. The performance of 50 children (23 native English speakers and 27 native Korean speakers) was examined on tasks assessing reading and spelling, phonological processing, speech perception, and receptive vocabulary at the start and end of the school year. Korean-speaking children outperformed native English speakers on each of the literacy measures at the start and end of 1st grade, despite differences in their initial phonological representations and processing skills. Furthermore, speech perception and phonological processing were important contributors to early literacy skills, independent of oral language skills, for children from both language groups.