This study examined contribution of morphological awareness to reading comprehension in two typologically diverse languages, focusing on young Chinese EFL (English as a Foreign Language) readers in China. It was particularly interested in how cross-linguistic similarities and variations in morphological awareness affected its transfer in Chinese–English biliteracy acquisition. Grades 5 and 6 children were measured in compound awareness and reading comprehension in English, and compound awareness, radical awareness, and reading comprehension in Chinese. Hierarchical regression analyses revealed that compound awareness contributed to reading comprehension within both Chinese and English. In addition, over and above English compound awareness and Chinese reading comprehension, Chinese compound awareness, but not radical awareness, explained a unique amount of variance in English reading comprehension. After Chinese compound awareness was controlled for, English compound awareness, however, did not make a significant contribution to Chinese reading comprehension. These findings were discussed in light of the common and language/script-dependent aspects of morphological awareness in Chinese and English and the context of biliteracy acquisition.