Traditionally, children in Hong Kong are taught to read English by reading/memorizing the whole English words followed by sentences and stores. Many research studies on English reading support that phonological awareness is crucial to reading success. A study is conducted in Hong Kong to examine the phonological awareness approach in developing English reading skills among preschool children who learn English as their second language. Participants were 5-year old children studying the last year of preschool education, the year before formal primary schooling. Children in the experimental group (182) received phonological awareness training for about 6 months while the children in the control group (166) were taught with their original English curriculum. Children in the experimental group performed significantly better in both reading-related tasks (picture naming and word reading) and reading-related skills (rhyme detection and phoneme identification). Results indicate that phonological awareness training is an effective approach to the development of English reading skills among Hong Kong children. The findings of the project will provide data to facilitate the school curriculum planning and suggest changing teaching practices in English reading so as to prevent difficulties in learning.