There is growing evidence supporting the powerful role that maternal education plays in child growth and cognitive development in developing countries. This study examined the contribution of maternal literacy in mediating the relationship between maternal education and variation in child outcomes from birth to 7 years of age. It was hypothesized that mothers who had more than 3-4 years of education and a greater probability of being literate would have offspring with reduced incidence of illness, improved growth, and improved performance on cognitive tests. The sample consisted of 266 children and their mothers drawn from four rural communities in eastern Guatemala. Findings indicated that after controlling for socioeconomic status, maternal literacy significantly mediated the relationship between maternal education and respiratory illness in offspring at 4 years of age. Maternal literacy also significantly mediated the relationship between maternal education and cognitive tests at 5 and 6 years of age. (Author/KB)