Two experiments investigated the effect of kanji morphemic homophony on lexical decision and naming. Effects were examined from both the left-hand and right-hand positions of Japanese two-kanji compound words. The number of homophones affected the processing of compound words in the same way for both tasks. For left-hand kanji, fewer morphemic homophones led to faster lexical decision and whole-word naming. For right-hand kanji, the number of morphemic homophones did not affect either lexical decision or naming. This effect of homophonic density suggested that, when a kanji-compound word is to be processed, phonological information of its kanji constituents is automatically activated and reverberates back to generate a series of orthographic representations of kanji morphemic homophones, but not in a completely parallel fashion.