A cross-sectional study was conducted with 83first – and 81 fourth graders at the end of theschool year to examine factors accounting forearly reading performance in Finnish, atransparent orthography with a clear mapping ofphonemes onto graphemes. Measures for bothgrades included reading comprehension, phonemeawareness, and object- and digit naming.Additionally measures of skills in morphology,spelling and a screening battery wereadministered to the first graders. The sets ofmeasures accounted for 56% of the variance inreading performance in first grade and 64% infourth grade. Phoneme awareness was stronglyrelated to reading performance and spelling atthe end of first grade, but only forless-skilled readers in fourth grade. Theseresults suggest a larger role for phonemeawareness for children learning a transparentorthography than has been suggested in earlierstudies. At the same time, listeningcomprehension contributed more strongly tofirst-grade reading performance than has beenreported for children learning to readEnglish.