In recent years the study of second language (L2) vocabulary learning through reading has attracted much attention in the field of L2 acquisition. A specific area that has received wide interest is the examination of the processes involved in deriving word meanings from context. The purpose of the present study was to examine the relationships between the ease with which learners infer word meanings from context, the inferential strategies they use, and their subsequent retention of these words. Eleven ESL learners read and inferred the meanings of 10 unknown words in an academic text. Think-aloud procedures were used to collect data about learners' inferential strategies and their correct inferences during reading. A pre-test and a post-test were used to examine learners' degrees of retention. The results showed an inverse relationship between ease of inference and retention. Quantitative and qualitative analyses of learners' inferential strategies showed a significant relationship between the type and frequency of use of inferential strategies and retention. The findings confirm that a distinction needs to be made between ease of inferencing and the retention of the word meanings inferred from the context. Findings also suggest that the degree of retention depends on the type of strategies used. (Contains 1 note and 5 tables.)