Previous studies have documented robust relationships between emergent literacy and later reading performance. A growing body of research has also reported associations between motivational factors and reading in early phases of reading development. However, there is less research about cross-lagged relationships between motivational factors and reading skills in beginning readers. To examine relationships between early reading skills, literacy interest and reader self-concept, we tested 1141 children twice during their first year of formal reading instruction in school. Cross-lagged analysis showed strong stability in reading skills and medium stability in literacy interest and reader self-concept over the first school year. We also found bidirectional relationships between reading skills and self-concept and between the motivational components of literacy interest and reader self-concept. In the final part of the article, we address the potential theoretical progress attainable through the use of cross-lagged designs in this field.