In this research, lexical and morpholexical reading in Italian children ages 8 to 10 years were investigated. Children and control adults were administered two tasks on words and pseudowords: visual lexical decision and naming. Word frequency effects in both lexical decision and naming were found in both children and adults. For all age groups pseudowords made up of roots and derivational suffixes were decided more frequently as possible words and were named more quickly and accurately than matched pseudowords with no morphological constituency. These results show that morpholexical reading is available and efficient in young readers of a shallow orthography, with similar patterns in children and adults. © 2002 Elsevier Science (USA).