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South Africa is a multilingual country and this has certain implications on the development of cognitive-linguistic skills such as phonological processing (amongst others), which are essential for reading development. Research has, in the past, not adequately addressed the development of, and relationship between, a broad range of phonological processing and reading skills in South Africa. The study investigates the relationship between phonological processing skills and reading development in Northern Sotho-English bilingual children. Ninety-eight participants, divided into group 1 (n=48) and group 2 (n=50) based on their Language of Learning Language of Teaching were sampled. Group 1 received literacy instruction in Northern Sotho, whilst group 2 in English. Participants were assessed using a battery of phonological processing tests and on reading abilities in English and Northern Sotho. Correlations, multiple regressions and multivariate analyses of variance were conducted. Findings revealed that phonological processing skills are essential in reading development in both the first and second language of the participants. / African Languages / M.A. (Linguistics)