In recent years, multiple studies have shown that the languages of a bilingual interact during processing. We investigated sign activation as deaf children read words. In a word-picture verification task, we manipulated the underlying sign equivalents. We presented children with word-picture pairs for which the sign translation equivalents varied with respect to sign phonology overlap (i.e., handshape, movement, hand-palm orientation, and location) and sign iconicity (i.e., transparent depiction of meaning or not). For the deaf children, non-matching word-picture pairs with sign translation equivalents that had highly similar elements (i.e., strong sign phonological relations) showed relatively longer response latencies and more errors than non-matching word-picture pairs without sign phonological relations (inhibitory effects). In contrast, matching word-picture pairs with strongly iconic sign translation equivalents showed relatively shorter response latencies and fewer errors than pairs with weakly iconic translation equivalents (facilitatory effects). No such activation effects were found in the word-picture verification task for the hearing children. The results provide evidence for interactive cross-language processing in deaf children.