Patterns of reading development were examined in native English-speaking (L1) children and children who spoke English as a second language (ESL). Participants were 978 (790 L1 speakers and 188 ESL speakers) Grade 2 children involved in a longitudinal study that began in kindergarten. In kindergarten and Grade 2, participants completed standardized and experimental measures including reading, spelling, phonological processing, and memory. All children received phonological awareness instruction in kindergarten and phonics instruction in Grade 1. By the end of Grade 2, the ESL speakers' reading skills were comparable to those of L1 speakers, and ESL speakers even outperformed L1 speakers on several measures. The findings demonstrate that a model of early identification and intervention for children at risk is beneficial for ESL speakers and also suggest that the effects of bilingualism on the acquisition of early reading skills are not negative and may be positive.