PURPOSE: To investigate phonological awareness and working memory skills as well as their influence on the literacy process in a group of intellectually normal children. METHODS: Forty intellectually normal children (7.6-8.0 years) from the second and third grades of elementary school participated. Children were organized in two groups (20 children each): one with and another without literacy difficulties. These participants underwent RAVEN's intelligence quotient test, audiometric assessment, CONFIAS test of phonological awareness, written spelling task, and working memory test. RESULTS: Children in the alphabetic phase presented a good development of phonological awareness, and 85% of them showed a high-performance working memory. Children in the syllabic-alphabetic phase had changes in phonological awareness, and 91.6% of them showed an average working memory performance. The subjects at pre-syllabic and syllabic phases demonstrated more difficulties in phonological awareness than those at syllabic-alphabetic and had a poor working memory performance. Between-group differences were observed for CONFIAS and working memory tests (p<0.0001). There was also a significant correlation (r=0.78, p=0.01) between the skills of phonological awareness and working memory for the total sample of individuals. CONCLUSIONS: Based on these results, it was found that as phonological awareness and working memory levels increased, the literacy phase also advanced, therefore showing that these are directly proportional measures.