The present study examined the event-related potentials (ERPs) and reading-language skills of elementary school children with and without reading difficulties. Typically developing children showed an N400 effect characterized by significantly larger N400 amplitudes elicited by nonwords than real words. Their meaning processing shown by the N400 systematically differed by lexicality. On the other hand, the N400 effect was absent in children with reading difficultiesExploratory analyses were conducted with the N1 and Late Positive Component. Additionally, the relationships between ERPs and reading-language skills were examined; sight word efficiency and phonemic decoding efficiency accounted for significant variance in the N400 effect.