Background: Disruptions of reading processes due to text substitutions can measure how readers use lexical information. Methods: With eye-movement recording, children and adults viewed sentences with either identical, orthographically similar, homophonic or unrelated substitutions of the first characters in target words. To the extent that readers rely on orthographic or phonological cues, substitutions that contain such cues should cause less disruption reading than do unrelated substitutions. Results: On pretarget words, there was a reliable reduction in gaze duration due to homophonic substitution only for children. On target words, we observed reliable recovery effects due to orthographic similarity for adults. On post-target words, adults had better orthographic-based and phonological-based recovery abilities than children. Conclusions: The combination of eye movement recording and the error detection paradigm offers a novel implicit paradigm for studying reading development: during sentence reading, beginning readers of Chinese may rely on phonological mediation, while skilled readers have more direct access to semantics from orthography.