The purpose of the study was to determine whether the lexical compounding, suffixation, and part of speech aspects of lexical prosody rendered while reading text aloud are predictive of children's developing oral reading fluency and reading comprehension skills. Ninety-four third grade children were recorded while reading aloud a grade-level passage targeting lexical prosody contrasts related to suffixation, compounding, and part of speech. Children also completed assessments on reading fluency, word reading efficiency, and reading comprehension skills. Prosodic measurements of pitch and amplitude for each syllable of the targeted words, and spoken head word length in ms for targeted compound words, were carried out. Spectrographic analyses indicated that children generally displayed appropriate prosody for each lexical prosody contrast examined. The extent to which children made these prosodic distinctions between syllables was related to their reading fluency and comprehension skills. The study finds that, in the oral reading of connected texts, children's use of lexical prosody is an aspect of general reading prosody that is predictive of reading fluency.