Research has emphasized the importance of phonological awareness, phonemic decoding, and automaticity in reading development. Special and general education teachers need valid, efficient, and effective early literacy indicators for schoolwide screening and monitoring that adequately predict reading outcomes. The purpose of this study was to examine the interrelationships and predictiveness of kindergarten early literacy indicators from the "Dynamic Indicators of Basic Early Literacy Skills" (DIBELS) within the context of a path analysis. The results support the validity of kindergarten DIBELS in predicting ever more complex reading skills in a developmental progression from the middle of kindergarten to second grade. (Contains 3 tables and 1 figure.)