Morphological analysis is a form of problem solving to work out the meanings of unfamiliar words by applying knowledge of morphemes. It has emerged recently as an important predictor of reading comprehension. However, while gamification can potentially be used to teach this skill, few studies have examined its use. To address this, a computer-based gamified approach was developed specifically to improve English morphological analysis. It was integrated into teacher instruction and formed blended learning. In the gamification design, progression/achievement-oriented game design elements (e.g., points, badges, levels and progress bar) were adopted, as were non-digital and social game design elements. A mixed methods approach was used to evaluate the effectiveness of this blended gamified programme on improving students' learning engagement and reading comprehension when compared to a conventional face-to-face, non-gamified method of teaching. The target was a group of Chinese students learning English as a foreign language (EFL). Two classes, comprising a total of 104 seventh graders, were assigned randomly to either the gamified or the non-gamified programme and received 10 sessions of training (55 min per session). The results of a one-way ANCOVA showed that students in the blended gamified programme performed significantly better on English reading comprehension than the face-to-face, non-gamified group. Furthermore, the blended gamified group showed significantly higher behavioural and cognitive engagement than the non-gamified group, although no significant difference was observed in emotional engagement. Interviews with the students shed light on the factors that improved their learning and engagement in the gamified class. This research expands the current understanding of gamification design and suggests some care should be taken in using social game design elements.