This paper proposes that phonics and meaning instruction in beginning reading programs can be designed to be mutually supportive. The first section outlines attempts to modify a commercially available reading program in order to provide useful phonics instruction strategies. Students showed strong gains on achievement tests after implementation of the modified commercial program. An analysis of the reading process delineates the separate kinds of reading competencies, with recommendations for their effective integration in instruction design. Finally, the New Primary Grades Reading System (NRS), the outcome of these experiences, is described. A section dealing with the NRS materials suggests the superiority of its spiral learning structure and of its particular attention to specific blending instruction and to comprehension formats. Data gathered from NRS first-grade classes and control classes show that NRS students obtained significantly higher achievement test scores. (Author/AA)