This experiment employed the boundary paradigm during sentence reading to explore the nature of early phonological coding in reading. Fixation durations were shorter when the parafoveal preview was the correct word than when it was a spelling control pseudoword. In contrast, there was no significant difference between correct word and pseudohomophone previews. These results suggest that the phonological codes are assembled before word fixation and are used for lexical access. Moreover, there was evidence that orthographic codes influence the activation of word meaning. We found that fixation durations were shorter for orthographically similar parafoveal previews, and this orthographic priming effect is limited to pseudohomophones. Thus, it seems that both the orthographic and the phonological similarities of the parafoveal preview to the target play a part in the facilitative effects of the preview.