This study explores the effects of Electronic Peer-Assisted Learning for Kids (EPK), on the quality and development of reading skills, peer interaction and self-concept in elementary students. The EPK methodology uses a well-developed, synchronous computer-supported, collaborative learning system to facilitate students' learning in Chinese. We first review the theoretical framework and architecture of EPK. This study aimed to compare students learning Chinese language arts activities online using EPK with students learning face-to-face in a classroom setting. Students' online interactions were coded into four patterns of peer interactions: task coordination, tutor behaviour, tutee behaviour and off-task. The online activity type significantly influenced the online peer interactions. Students in the online peer-assisted learning group outperformed the face-to-face group on reading skills. Students learning online showed significant growth in self-concept, and this was especially true for students who were passive participants. These findings demonstrate that EPK is an effective tool that can enhance elementary students' reading, as well as promote positive self-concepts.