Children from a community‐based longitudinal study identified as reading disabled in Grade 2 (7–8 years of age) were followed up in Grade 6 to investigate persistence and change in reading problems and to identify the factors involved in this process. Hypotheses were tested regarding the influence of cognitive and psychosocial factors. Reading disability was quite stable in this sample, with only about 28% of children estimated to be reading within the normal range by Grade 6. Evidence from detailed assessment of subsamples of “recovered” and “nonrecovered” readers suggested that the factors that appeared to play a role in “recovery” were IQ, language abilities, working memory, and the adoption of a phonological “word decoding” approach when reading and spelling. The results supported the importance of the development of phonological skills in learning to read and spell. The existence of behavioural problems and lower socioeconomic status also discriminated between boys with persistent reading disability and recovered boys, but not girls. This finding suggests that different mechanisms may be influential in the development and resolution of reading disability in males and females. The results of the study point to the importance of early identification and treatment or remediation for both behavioural problems and