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This two-wave longitudinal study examined the reciprocal relations between home literacy environment and Chinese children’s learning of English as a second language, and whether child interest and parental education level moderated the relations. One hundred and ninety-one children’s English phonological awareness, vocabulary, letter knowledge, and word reading were assessed and caregivers completed a questionnaire on their home literacy practices and resources. Results showed different cross-lagged relations between HLE and children’s English language and literacy skills. Furthermore, caregivers’ provision of literacy resources was likely to positively lead to children’s later word reading skills if children exhibited more interest in English learning. Additionally, parents with different education levels may have different practices and resources to support their children’s ESL development.