This work examines the role of morphological awareness in contrast to phonological processing in reading comprehension amongst two groups of native Arabic children: a group with learning disabilities (LD) and a mainstream group who were matched to the LD group in age or reading level. Measures of reading comprehension fluency, phonological skills, and morphological ability were given to both groups in addition to tests of nonverbal ability. For the mainstream children, unique variability in comprehension was predicted by the morphological measures over that of the measures of phonological skills and general nonverbal ability. In contrast, for the LD data, variability in comprehension was not predicted by morphological ability even though the children with LD performed the morphology task as well as their typically developing peers did. These findings are discussed in terms of theories of reading acquisition across languages as well as recommendations for literacy teaching and LD intervention in Arabic. (Contains 10 tables.)