The present study investigated the moderation effect of visual temporal processing among the relationship between early picture book interaction experience and Chinese character reading of Chinese children with and without dyslexia. In total 118 Chinese children aged 8 to 10 years old were recruited from Taiwan. Half of them were typical learners, while the other half were identified as having dyslexia. We found children with typically developing showed significantly higher levels of early picture book interaction experience and visual temporal processing compared to those with dyslexia. Also, two groups of participants showed distinct profiles of visual temporal processing, early picture book interaction experience, and Chinese character reading. For typically developing students, visual temporal processing significantly contributed to Chinese character reading. In contrast, for students with dyslexia, the interaction between visual temporal processing and early picture book interaction experience was a significant predictor, and early picture book interaction experience’s significant contribution to Chinese character reading was only found for those who had better visual temporal processing. •Examined the role of EPBIE and VTP in reading Chinese characters in children with and without dyslexia.•Children with dyslexia had lower EPBIE and VTP than typically developing children.•VTP moderated the link between EPBIE and Chinese character reading in children with dyslexia.•Findings emphasize cognitive and ecological factors in reading development in Chinese children with dyslexia.