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This study investigates the role of hierarchical shared linguistic knowledge in reading and writing development among linguistically diverse upper-elementary students. Drawing on Shared Knowledge Theory and the Interactive Dynamic Literacy model, the study conceptualizes shared linguistic knowledge across three levels - word, sentence, and discourse - and tests their interrelationships using structural equation modeling. Data were drawn from 573 students participating in a randomized literacy intervention, with measures including vocabulary, decoding, syntax, core analytic language skills, reading comprehension, and writing outcomes. Confirmatory factor analysis supported a three-factor model, and results revealed significant direct and indirect effects from word- and sentence-level skills to discourse-level literacy. Findings highlight the developmental pathways through which shared linguistic resources support reading and writing, informing instruction for multilingual learners.