This family-risk (FR) study examined whether the literacy skills of parents with dyslexia are predictive of the literacy skills of their offspring. We report data from 31 child-parent dyads where both had dyslexia (FR-D) and 68 dyads where the child did not have dyslexia (FR-ND). Findings supported the differences in liability of FR children with and without dyslexia: the parents of the FR-D children had more severe difficulties in pseudoword reading and spelling accuracy, in rapid word recognition, and in text reading fluency than the parents of the FR-ND children. Finally, parental skills were found to be significant predictors of children's Grade 3 reading and spelling. Parental skills predicted children's reading and spelling accuracy even after controlling for children's preschool skills. Our findings suggest that the literacy skills of a parent with dyslexia might be valuable in assessing early on their child's liability to dyslexia. (Contains 7 tables.)