A total of 82 Chinese 11- and 12-year-olds with and without dyslexia were tested on four paired associate learning (PAL) tasks, phonological awareness, morphological awareness, rapid naming, and verbal short-term memory in three different experiments. Experiment 1 demonstrated that children with dyslexia were significantly poorer in visual-verbal PAL than nondyslexic children but that these groups did not differ in visual-visual PAL performance. In Experiment 2, children with dyslexia had more difficulties in transferring rules to new stimuli in a rule-based visual-verbal PAL task as compared with children without dyslexia. Long-term retention of PAL was not impaired in dyslexic children across either experiment. In Experiment 3, rates of visual-verbal PAL deficits among children with dyslexia were all at or above 39%, the highest among all cognitive deficits tested. Moreover, rule-based visual-verbal PAL, in addition to morphological awareness and rapid naming ability, uniquely distinguished children with and without dyslexia even with other metalinguistic skills statistically controlled. Results underscore the importance of visual-verbal PAL for understanding reading impairment in Chinese children. (Contains 5 tables.)