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AbstractThe aim of this study was to examine the relationships between verbal short‐term memory, phonemic awareness, and reading ability, in children with a specific reading difficulty. The results confirmed the frequently reported finding that most, if not all children with a specific reading difficulty have poor phonological awareness. In addition, poor phonological awareness in the reading‐difficulty group was associated with significantly poorer nonword reading ability, and with poorer phonological memory. When the reading‐difficulty group was further subdivided with respect to Digit Span performance there was no difference in nonword reading with respect to this overall verbal short‐term memory measure. However, poor short‐term memory, regardless of phonological awareness level, was significantly associated with a lower WISC III Verbal IQ, in particular, significantly poorer performance on the WISC III Vocabulary, Comprehension and Similarities subtests, as well as with significantly poorer reading comprehension. In addition, poor short‐term memory regardless of phonological awareness ability was associated with poorer spelling and arithmetic performance.