This study investigated the relationship between L2 oral narrative morphosyntactic quality and L2 reading comprehension in a sample of 81 students enrolled in a Canadian French immersion program in Grade 1. Measures of French narrative generation and reading comprehension were administered concurrently. The proportion of utterances in the narratives that were judged to be grammatically acceptable was found to explain unique variance in reading comprehension, controlling for nonverbal intelligence, maternal education, phonological awareness, vocabulary and word reading. The results suggest that even in the earliest stages of L2 literacy acquisition, L2 oral language skills contribute to reading comprehension outcomes. The results of our study suggest that there may be value in providing L2 children with classroom-based story-related experiences that expose them to literate language.