This research was funded through the American Speech and Hearing Foundation's 2012 StudentResearch Grant in Early Childhood Language Development awarded to Vanessa Harwood as well as an anonymous generous donation to Haskins Laboratories. Electrophysiological measures of language within early childhood provide important information about neurolinguistic development. We investigated associations between amplitude and latency of the P1 and N2 event-related potential components in response to spoken pseudowords, and clinical measures of language performance within a sample of 58 typically developing children between 24 and 48 months. N2 amplitude differences between repeated and new tokens were correlated with measures of expressive and receptive language and speech sound production. Phonemic sensitivity measured by the N2 component may reflect the integrity of neural networks that are important for speech perception and production in young children.