The relative importance of phonological versus morphological processes in reading varies depending on the writing system's orthographic consistency and morphological complexity. This study investigated the interplay between phonology and morphology in Hebrew reading acquisition, a language offering a unique opportunity for such examination with its rich, complex Semitic morphological system and dual writing versions differing in orthographic consistency--transparent-pointed and deep-unpointed versions. Ninety-eight second graders and 81 fourth graders participated in pseudoword-reading tasks designed to distinguish between the different processes: pointed morphologically based pseudowords (pointed MPW), reflecting phonological and morphological processing; unpointed morphologically based pseudowords (unpointed MPW), reflecting only morphological processing; and pointed non-words (pointed NW), with no internal morphological structure, reflecting only phonological processing. Real pointed-word reading accuracy and fluency were also assessed. Results showed the highest accuracy in reading unpointed MPW, with a similar accuracy level observed between unpointed MPW and pointed MPW in second grade, while a significant difference emerged in fourth grade. An age-by-processing type interaction revealed decreasing accuracy in pointed MPW and increasing accuracy in unpointed MPW with age. Additionally, morphological processing significantly enhanced the accuracy and fluency of reading pointed words beyond phonological processing, despite the comprehensive phonological information provided by the transparent, pointed script. These findings suggest that the contribution of morphology exceeds that of phonology as early as second grade, with this trend strengthening through fourth grade, emphasizing children's early prioritization of morphological transparency over orthographic consistency in learning to read Hebrew Semitic orthography.