Numerous studies have been conducted to explore the risk factors for reading disabilities (RDs) among children. Based on these studies, factors such as gender, socioeconomic status, and the home literacy environment have been widely found to be associated with children who have RDs. However, children from a multiethnic city are seldom investigated. This study aimed to explore the prevalence of RDs and the potential environmental risk factors in Shihezi, Xinjiang, where people of multiple ethnicities, including Han and ethnic minority children, live and study together. A cross-sectional study was conducted in the city of Shihezi. A two-stage sampling strategy was applied to randomly select six primary schools in the city. In total, 6,539 students in grades two to six participated in this study. There were 6,065 valid questionnaires obtained for further analyses. We used the Dyslexia Checklist for Chinese Children and the Pupil Rating Scale to screen for the children with RDs. The χ2 test and multivariate logistic regression were employed to reveal the potential risk factors of RDs. The prevalence of children with RDs was 3.38% in Shihezi City and was significantly different between Han (3.28%) and Uighur (7.42%) children (P < 0.05). There was no significant difference in the prevalence of RDs between Han and Hui children. Among these children with RDs, the gender ratio of boys to girls was nearly 2:1. Multiple logistic regression analysis showed that gender (P < 0.01), learning habits (P < 0.01), and the home literacy environment (P < 0.01) were associated with RD. The results may be useful in the early identification and intervention of children with RDs, especially among ethnic minorities.