This report examines the status of reading acquisition in Timor-Leste's primary schools. It is written for education stakeholders and policy makers in Timor-Leste, including government officials, politicians, educators, parents, Timor-Leste's donor partners and Non Governmental Organizations (NGOs) active in the country. Because the report is aimed at those who are already familiar with the education system in Timor-Leste, it will not attempt to describe the education system, its history, or the issues, with one important exception, that policy makers and stakeholders are currently confronting. One issue in Timor-Leste, however, merits special mention in the context of this analysis. Approximately 30 percent of primary school age children in Timor-Leste are not enrolled in primary school because they never started school or have dropped out. This study assesses the reading ability only of those children who are in school. The findings show significant problems with reading acquisition for children in school. If those children who are not in school had been included in the sample, the results will be lower than those currently presented. In Timor-Leste, improving reading acquisition in the early grades is expected to lead to better learning outcomes, as well as to better access, reduced repetition and fewer drop outs.