Event-related potentials (ERPs) were recorded from 27 children (14 girls, 13 boys) who varied in their reading skill levels. Both behavior performance measures recorded during the ERP word classification task and the ERP responses themselves discriminated between children with above-average, average, and below-average reading skills. ERP amplitudes and peak latencies decreased as reading skills increased. Furthermore, hemisphere differences increased with higher reading skill levels. Sex differences were also related to ERP amplitude variations across the scalp. However, ERPs recorded from boys and girls did not differ as a function of differences in the children's reading levels.