The aim of this study was to examine (a) the development of vocabulary and grammar in children with family-risk (FR) of dyslexia and their peers with no such risk (NoFR) between ages 1;6 and 6;0, and (b) whether FR-status exerted an effect on the direction of temporal relationships between these two constructs. Groups were assessed at seven time-points using standardised tests and parental reports. Results indicated that although FR and NoFR children had a similar development in the earlier years, the FR group appeared to perform significantly more poorly on vocabulary at the end of the preschool period. Results showed no significant effect of FR status on the cross-lagged relations between lexical and grammatical skills, suggesting a similar developmental pattern of cross-domain relations in both groups. However, FR status seemed to have a significantly negative association with vocabulary and grammar scores at age 6;0, resulting in language outcomes in favour of NoFR children.