The study investigated the strategies used by Chinese students in inferring meanings of unfamiliar words and the influential factors of successful use of different lexical inferencing strategies. A total of 104 fourth graders inferred 36 unfamiliar semitransparent compound words in three conditions: word in isolation, contextual information only, and both word and context. Results revealed that students were more likely to obtain the correct meaning of words when both morphological information and contextual information were available. The likelihood of using a morpheme-based or context-based lexical inferencing strategy was strongly influenced by the presentation condition of target words and precursors. Students with higher vocabulary knowledge and reading comprehension ability were more sensitive to morphological and contextual information and were able to synthesize multiple sources of information, whereas children with lower vocabulary knowledge and reading comprehension ability showed difficulties in integration and tended to overly rely on morphological information. The findings reveal the interactions between available source information and individual differences in vocabulary knowledge and reading comprehension in predicting lexical inferencing and have implications for vocabulary and reading instruction.