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It has been proposed that morphological knowledge facilitates the integration of sublexical and lexical codes in both word reading and spelling and mediates the transition from reliance on sublexical cues to lexical cues during early literacy development (Bahr et al., 2020). However, the specific stage at which morphology begins to influence reading and spelling remains unclear, as does the question of whether there are differences across languages (Landerl et al., 2022). In the present study, we explore the extent to which morphology may explain, in addition to the already known predictors of phonemic awareness (PA) and rapid automatic naming (RAN), individual variations in word reading and spelling within two groups of Swedish-speaking children identified with word reading difficulties (n = 77) and typical reading (n = 59), respectively, in Grade 2. All children participated in standardized assessments of PA, RAN, morphological awareness (MA), vocabulary, word reading, and spelling at the beginning of Grade 2. Hierarchical regression analysis was used to investigate whether MA explained any additional variance within the dependent variables of word reading and spelling when controlling for word-reading group, PA, and RAN. As independent variables, word-reading group, PA, and RAN were included at the first step and MA was added at the second step. MA was found to have only a modest influence on the variances for word reading and spelling when controlling for group, PA and RAN. In conclusion, this study of beginning readers and spellers in Swedish, confirms previous findings that PA makes the more substantial contribution to the variation within early word reading and spelling, with MA contributing only modestly. These results support the view that phonics should provide the primary instructional foundations, with MA serving as a complementary component during the first years of literacy instruction.