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Theoretically, abundant conversation experiences are necessary for young children to develop their preliteracy skills – the foundation for reading comprehension. But very few studies have provided empirical evidence on it. This study investigated whether K1 children experiencing a higher quality of teacher-child conversations would perform significantly better in preliteracy skills (phonological awareness, morphological awareness and oral language) and word reading and whether the quality of teacher-child conversations could moderate the contribution of preliteracy skills to word reading. Results supported the theoretical importance of good teacher-child dialogues in developing young children’s preliteracy skills and suggested that the effectiveness of preliteracy skills training might depend on the verbal environment children experience at preschools.