This study examines the intra-and inter-lingual relationships between first and second language morphological awareness and reading comprehension among grade 6 Chinese learners of English as a foreign language in China. Morphological awareness measures covered compounding as well as derivation. Hierarchical regression analyses revealed that within both Chinese and English, compound and derivational awareness independently and significantly predicted reading comprehension. Cross-linguistically, Chinese compound awareness explained a unique proportion of variance in English reading comprehension, over and above English vocabulary knowledge, English compound awareness, and other related variables. Such a cross-linguistic effect, however, was not found of English compound awareness on Chinese reading comprehension. Derivational awareness in one language did not show a significant cross-linguistic relationship with reading comprehension in the other language, when other variables were considered. These results are discussed in light of the importance of morphological awareness to reading comprehension, cross-linguistic transfer of morphological awareness and a possible linguistic distance effect on such transfer, and the context of Chinese-English biliteracy acquisition.