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Objectives/Research Questions: Two experiments were conducted to investigate the effect of morphological knowledge on second language (L2) online processing of derivational words by Chinese first language (L1)–English L2 learners. Methodology: Experiment 1 was performed at the single word level with a masked priming paradigm using the lexical decision task. Experiment 2 was conducted at the sentence level with a self-paced reading paradigm. According to their performance on the morphological knowledge test, the Chinese (L1)–English (L2) learners were grouped into two groups: a high morphological knowledge group and a low morphological knowledge group; and these were matched for proficiency. Data and Analysis: Data were analyzed using a repeated-measures analysis of variance. In Experiment 1, mean response times and accuracy of the derived suffixed primes were analyzed between the two groups. In Experiment 2, mean response times in the regions of interest were analyzed between the two groups. Findings/Conclusions: In Experiment 1, results showed that a full priming effect was evident in the group with high morphological knowledge, indicating application of rule-based decompositions, whereas this effect was not observed in the group with low morphological knowledge. In Experiment 2, the group with high morphological knowledge had a significant processing cost in processing the derivational words, suggesting the employment of rule-governed decomposition. These results suggest that morphological knowledge plays an important role in online L2 morphological processing. Originality: In L2 morphology literature, the current study empirically explored the role of morphological knowledge in derivational processing. Significance/Implications: The study suggested that improvements in morphological knowledge can facilitate the rule-based processing of L2.

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