We combined independently the word length and word frequency to examine if the difficulty of reading material affects eye movements in readers of German, which has high orthographic regularity, comparing the outcome with previous findings available in other languages. Sixteen carefully selected German-speaking dyslexic children (mean age, 9.5 years) and 16 age-matched controls read aloud four lists, each comprising ten unrelated words. The lists varied orthogonally in word length and word frequency: high-frequency, short; high-frequency, long; low-frequency, short; low-frequency, long. Eye movements were measured using a scanning laser ophthalmoscope (SLO). In dyslexic children, fixation durations and the number of saccades increased both with word length and word frequency. The percentage of regressions was only increased for low-frequency words. Most of these effects were qualitatively similar in the two groups, but stronger in dyslexic children, pointing to a deficient higher-level word processing, especially phonological deficit. The results indicate that reading eye movements in German children are modulated by the degree of difficulty, and orthographic regularity of the language can determine the nature of modulation. The findings suggest that, similar to Italian but unlike English readers, German children prefer indirect sub-lexical strategy of grapheme-phoneme conversion.