Accurate prediction of early childhood reading performance could help identify at-risk students, aid in the development of evidence-based intervention strategies, and further our theoretical understanding of reading development. This study assessed the validity of the Developmental Indicator for the Assessment of Learning (DIAL) language-based tasks in predicting future reading performance (as measured by the TerraNova/2 Word Analysis and Reading Composite scores) and reading program placement of first grade students. DIAL and TerraNova/2 scores, reading intervention program enrollment, and selected demographic data were gathered from the archived records of 312 subjects in a suburban NJ school district who were administered the DIAL-R (N=163) and DIAL-3 (N=149) between the ages of 4 and 5. Bivariate correlation and multiple regression analyses confirmed that both phonological and non-phonological tasks were moderately useful in predicting students' subsequent word analysis and reading comprehension abilities, even after controlling for age, gender, preschool enrollment and non-verbal cognitive skills. More specifically, phonological memory was found to exhibit stronger predictive utility than letter naming. These analyses also indicated that phonological sensitivity, phonological access and phonological memory are independent constructs, with each exhibiting modest utility in predicting future reading performance. However, none of four composite models tested (DIAL R/3 total scores, DIAL R/3 factor scores, language and concept area combined scores, or reading correlated task scores) provided adequate sensitivity to predict a child's future need for placement in a reading intervention program, indicating that DIAL screening should not be used as the sole method to identify at-risk children. In terms of theory development, findings comparing the predictive utility of phonological and non-phonological tasks were inconsistent with both the phonological and the two-path models of reading development. This study supports a multi-factorial model of reading with equal importance given to both phonological and non-phonological language skills in the development of decoding and comprehension skills. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]