The current research is an examination of the nature of reading difficulties in dyslexic readers of Hindi. The reading performance of children with dyslexia was compared with that of reading-age (RA) and chronological-age (CA) matched controls on word and non word reading of items of different length. The results showed that the dyslexic children were significantly poorer than CA controls on reading speed and accuracy and were worse than RA controls on reading accuracy. For all groups, reaction time and errors increased with increasing length of stimuli. Analysis of reading errors further indicated that the dyslexic children produced a greater percentage of graphemic than phonological errors, and that errors involving vowel substitutions or deletions were much more frequent than those involving consonant errors. In general, the findings reveal that, despite the transparency of the Hindi script, dyslexic readers of Hindi have difficulty in developing high-quality, segmentally organized phonological representations of words and display poor blending skills.