The effect of reading an electronic storybook (e-book) on Israeli children’s language and literacy was examined in kindergarten children (N=40; age 5:2–6:3) compared to first graders (N=50; age 6:3–7:4). The children in each age group were randomly assigned to two groups: an intervention group which read the e-book five times and a control group which was afforded the regular school program. Pre- and post-tests included vocabulary and word reading measures. Post-tests included story comprehension and production. Children who read the e-book exhibited significant progress in word meaning and word reading compared to the control group. Kindergarten children progressed in word reading more significantly than first graders across treatment groups. This could be explained by the ceiling effect of the first graders’ word reading level which did not leave much room for progress in this skill compared to the kindergarten children. No interaction was found between age and treatment groups. Kindergarten children exhibited a good level of story comprehension, similar to first graders, although their story production was lower. Implications for future research and education are discussed.