The purpose of the present paper is to provide order to the existing data to allow for theoretical explanations concerning the specific factors involved in linguistic processing, memory development, and reading achievement in deaf children and adolescents. Language processing skills and short-term memory encoding are reviewed as essential components in good reading comprehension. Research concerning the short-term encoding capacities of the deaf is presented, followed by the relationship between short-term memory and reading ability in deaf children. The essential factors necessary for effective encoding are then examined and the hypothetical implications regarding hemispheric lateralization raised. The remainder of the paper focuses on implications for education and research, including the use of a theoretical model for reading instruction that includes instruction in encoding, memorization and recall, and problem-solving and logical thought. (Author/CL)