Using data from the Early Childhood Longitudinal Survey--Birth cohort ("N" = 6,450), the present study hypothesized that 48-month-old children of divorced mothers would score lower on emerging literacy than the children of formerly cohabiting mothers, compared with the children of mothers in stable marriage. The children of mothers who divorced or exited cohabitation but then remained single did not have significantly lower literacy than children of mothers in stable marriage. The children of divorced parents who then cohabited with another man fared significantly more poorly on literacy tests than children of continuously married parents. The children in the divorce-- cohabitation group also had significantly lower literacy than the children in the divoe--noncohabitation and cohabitation--noncohabitation groups. Mothers in consistent cohabiting relationships were also more likely than mothers in stable marriage to have children with low literacy. The association between stable cohabitation and child literacy was mediated by change in socioeconomic status. (Contains 2 tables.)