The present 4-year longitudinal study examined preschool predictors of Grade 1 dyslexia status in a Chinese population in Hong Kong where children started learning to read at the age of three. Seventy-five and 39 Chinese children with high and low familial risk respectively were tested on Chinese word reading, oral language skills, morphological awareness, phonological skills, rapid naming, and print-related skills from age 4 to 6 and a standardized dyslexia test at age 7. Results showed that children of the high risk group performed significantly worse than the low risk group in Chinese literacy, phonological awareness, and orthographic skills at age 7. All the children with dyslexia had word reading difficulties in at least one preschool year. Results of the logistic regression showed that preschool verbal production, syllable deletion, and letter naming were the best predictors of dyslexia outcome at age 7. As in alphabetic languages, preschool oral language skills like verbal production, phonological skills, and print-related skills are the most significant predictors of children's later reading difficulties.