In this study, we explored the relationship between beginning readers' phonological awareness and other aspects of phonological processing, specifically as manifested in short-term memory and comprehension tasks. The theoretical questions underlying the study were (a) what roles phonological processes play in children's beginning reading, from word identification through sentence comprehension, and (b) whether those roles are sufficiently related that potential difficulties at one level directly affect processing at other levels. Phonologically induced effects were observed for word-list memory and for sentence judgments for both novice readers (at the end of kindergarten) and relatively more experienced readers (end of Grades 1 and 2). For both age groups, correlational analyses revealed relationships among phonological awareness, phonological processing in list memory, and word reading. However, phonological processing in sentence comprehension was not related to other types of phonological processing. These results indicate that although phonology plays a role during comprehension, phonological processing may not be as limiting a factor in comprehension as in word reading.