Purpose. To provide a detailed description of the development of word recognition during the first year of schooling, with respect to processing speed and decoding accuracy. Method. One year longitudinal study of the first year of reading development in 35 seven year old Swedish children. The study used a computer based measurement procedure with four waves of repeated measurement of reading aloud of single words. The accuracy of word decoding was recorded and analyzed with respect to errors and decoding strategies. Reaction and process times were recorded for reading as well as for rapid naming and letter knowledge. The word material consisted of; (a) very familiar (content and functor) mono syllable simple words; (b) complex words which occur with high frequency in the early stages of children's reading schemes; (c) simple one-syllable pseudowords and (d) two-syllable pseudowords. Also a short spelling task was used. Assessment of letter knowledge and phonological awareness was done prior to school entry. Results. The results show a rapid reading development for practically all children and clear evidence for code oriented and phonologically based decoding strategies. At the first three timepoints monosyllable pseudo words were read more correct than simple words. The development of decoding speed was preceded by an increase in accuracy. Conclusions. When learning to read, in the Swedish orthography, the beginning readers rely on phonological skills and letter knowledge rather than using any holistic strategy. The results give no support to the claim of an initial logographic strategy in reading acquisition.