Even the best readers encounter words not instantaneously recognised. Consequently, competence in using effective and efficient word identification strategies is essential for fluent reading. We focus on an important word identification competency: application of knowledge of onsets and rimes for identifying words not known instantaneously. The authors propose that direct instruction in applying knowledge of onsets and rimes, as part of a balanced contextualised literacy program, can play a key role in fostering substantial growth in reading achievement.