It is well documented that good reading skills may be dependent upon adequate dorsal stream processing. However, the degree to which dorsal stream deficits play a causal role in reading failure has not been established. This study used coherent motion and visual frequency doubling to examine whether dorsal stream sensitivity measured before the commencement of formal reading instruction can predict emerging literacy skills in Grade 1. We demonstrate that over age, IQ and Kindergarten Letter knowledge, pre-reading measures of dorsal stream functioning, as assessed by frequency doubling sensitivity, could predict early literacy skills. These findings suggest that the relationship between dorsal stream functioning and poor reading skills exists before children learn to read, strengthening the claim that dorsal stream deficits may play a contributing role in reading failure. (Contains 2 figures and 3 tables.)