This study examined within and cross-language relations, and specifically, the role of phonological awareness (PA) skills in reading among young Hindi-speaking children (L1) who were learning to read English (L2) in Delhi, India. Data was collected from 143 children in Grades 1 and 2 using measures validated for this population. The analyses examined the associations between L1 and L2 PA and decoding, both within and across the two languages. The results showed that PA skills within each language significantly predicted decoding in that language. Furthermore, there was evidence of cross-language transfer with Hindi PA significantly predicting English word reading even after controlling for English PA. English PA also significantly predicted Hindi decoding, however, these effects decreased once Hindi PA was added to the model. These findings emphasize the important role that both L1 and L2 PA plays in reading among emergent Hindi--English bilinguals. The theoretical and practical implications of these findings on literacy instruction in India are discussed.