Despite clinical observation of the problems in emergent literacy experienced by unintelligible children, there are conflicting data about the possible relationship of expressive speech problems to literacy acquisition. Several confounding factors may explain the inconsistency in results across studies. Potential confounds include specificity and severity of speech impairment, age of participants, and pattern of speech errors. It was hypothesised that the presence of nondevelopmental speech errors can be considered a symptom of a breakdown at the level of processing phonological information that has an impact on both speech and literacy development. A cohort of 21 specifically speech-impaired children entering Year 1 at school was selected and classified into subgroups based on pattern of speech errors. Phonological awareness measures were administered early in Year 1 and literacy measures in Year 3. The results confirmed thot the presence of nondevelopmental speech errors predicted poorer phonological awareness skills and weaker literacy outcomes, particularly spelling.