Previous research has demonstrated positive relations between intrinsic reading motivation and reading competence. However, the causal direction of these relations and the moderating role of relevant background variables (e.g., students' achievement level) are not well understood. In the present study, a cross-lagged panel model was applied to academic track and nonacademic track fifth grade students (N?=?396) to test whether intrinsic reading motivation and reading competence are reciprocally related depending on the students' achievement level (indicated by school track affiliation). According to expectations, the cross-lagged effect of intrinsic reading motivation on reading competence was only significant for academic track students. In the nonacademic track group, neither the effect of intrinsic reading motivation on reading competence nor the reverse effect proved to be significant. Thus, the nature of the relation between intrinsic reading motivation and reading competence seems to depend on students' school track affiliation.