This study examined the influence of phonological memory and rapid naming on the development of letter knowledge. Participants were 77 Dutch children, who were followed from the start of their first kindergarten year (mean age 4 years 6.8 months) to the end of their second kindergarten year. Phonological memory was assessed by a nonword repetition test and a sentence repetition test. Rapid naming involved object naming. The study revealed found a substantial effect of phonological memory on the acquisition of letter knowledge that was particularly related to the ability to repeat nonwords. Vocabulary knowledge did not have an independent effect on letter learning after phonological memory was controlled. The study also showed a small effect of rapid naming on the acquisition of letter knowledge that was independent of the effect of phonological memory. Finally, the study also provided further evidence for a specific relation between phonological memory and vocabulary acquisition.