The relationship between late-talkers' language development and reading and spelling outcomes was examined in children with and without familial risk for dyslexia. The late-talking subgroups were defined using parent- and test-based assessments of receptive and expressive vocabulary and grammar at 2 and 2.5 years as intake criteria. The language skills of late talkers and the remainders of these two groups were assessed at 3.5, 5, and 5.5 years. Reading/spelling outcomes were compared at the end of the second grade. Late-talking toddlers of the at-risk group who had both poor receptive and expressive skills performed less well than all other groups on language measurements at 5.5 years. In contrast, the control group's late talkers with an expressive delay reached the language level of their agemates already by 3.5 years, and maintained their age-appropriate position two years later. The most significant differences in the reading skills were found between the at-risk children with receptive and expressive delay and the remainder of the controls. Age-appropriate early language skills did not, however, ensure norm-level fluent reading in the at-risk group. The remainder of the at-risk group performed at a significantly lower level than did the remainder of the controls, both on the oral reading and spelling tasks. (Contains 5 figures and 4 tables.)