The aim of this longitudinal study is to examine the contribution of morphological awareness to the prediction of reading and spelling in Greek. The target group (N = 404) consisted of children, aged 6-9 years at the start of the project, who learn literacy in Cyprus. Because there are no standardized measures of morphological awareness for Greek Cypriot children, morphological awareness measures were developed and validated. A concurrent analysis of the first wave of data collection showed that morphological awareness made a unique contribution to the prediction of reading and spelling in Greek. The longitudinal analyses showed that morphological awareness predicted performance in reading eight months later, even after partialling out grade level, verbal intelligence, phonological awareness and initial scores in reading and spelling. This study makes theoretical, empirical and practical educational contributions. It shows the long term and specific relation of morphological awareness with reading in Greek and establishes the plausibility of a causal link between morphological awareness and reading, which must be tested in further research using intervention methods. In practice, this study contributes valid measures for assessing morphological awareness in Greek as well as a new measure of spelling skill.