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This study examined the potential influence of lexical and sub-lexical characteristics on spelling abilities among 144 Grade 1 students. Further, the study investigated the effect of the Lexical Restructuring Hypothesis on children’s spelling achievement. Students were assessed for vocabulary skills at the end of Kindergarten and for letter knowledge, phonological awareness, alphabetic decoding, and spelling at the end of Grade 1 to allow appropriate time between measures for lexical restructuring. Based on path modeling, findings support a lexical (i.e., vocabulary) and sublexical (i.e., letter knowledge, phonological awareness, alphabetic decoding) route for spelling development. Findings did not support the Lexical Restructuring Hypothesis because vocabulary was not significantly related to phonological awareness proficiency. Implications for future research and classroom practice are provided.