In an event-related potentials (ERP) study, twenty-month-old children (n = 37) were presented with pseudowords to map to novel object referents in five presentations. Quicker attenuation of the visual Negative central component (Nc) to novel objects predicted a larger difference in N400 amplitude between congruous and incongruous presentations of pseudowords at test. Furthermore, better initial recognition of familiar objects (Nc difference between familiar and novel objects) predicted the strength of the N400 incongruity effect to the verbal labels of these real objects. This study presents novel evidence for a link between efficient visual processing of objects and word learning ability.