We investigated the unique effects of morphological awareness on several aspects of reading in Portuguese. We tested 132 Portuguese-speaking children in the fourth grade. Morphological awareness was assessed with a word analogy task that included inflectional and derivational transformations. Results indicated that morphological awareness was a significant predictor of word reading accuracy, word reading fluency, and reading comprehension after controlling for the effects of nonverbal ability and phonological awareness. Morphological awareness also explained unique variance in reading comprehension after adding word reading as a control. In conclusion, morphological awareness has important roles in both word reading and reading comprehension in Portuguese. Educational and clinical implications are discussed.