The dependence of visual word recognition on letter processing was investigated by measuring the effect of a cue word on subsequent target word processing for various degrees of cue/ target similarity. Using a simultaneous matching task (Experiments 1 and 2), modest facilitation was found for identical cue/target items only, whereas items that differed by a single letter led to substantial interference. Targets that shared internal or external letters with cues yielded latencies comparable to those for neutral or different cue conditions. The identical facilitation and high-similarity interference was also found in a lexical decision task under normal display conditions (Experiment 3). However, when direct letter processing was measured using spatially transformed targets (Experiment 4), large facilitatory effects were found for similar as well as for identical cue/target conditions. Although both letter and word codes appear to be activated by normally displayed words, such word code activity may not routinely depend upon letter code outputs.Many models of word perception (Estes, 1977;LaBerge& Samuels, 1974; Massaro, 1975;McClelland, 1979) propose that word codes are activated by means of constituent letter codes. For these models, the link from letter to word codes is generally assumed to be direct or indirect by means of intermediate spellingpattern codes. The flow of activation may proceed in discrete steps, with letter codes reaching full activation before transmitting their output to the word code level. Alternatively, McClelland (1979) has proposed that the flow of activation from one level to the next is continuous and does not depend upon prior recognition events at lower levels. Consistent with this "cascade" assumption, sufficient activation may converge on the word code from letter or spelling pattern sources, enabling it to reach recognition criterion before any given letter or spelling pattern code reaches its particular recognition threshold.In all of these variations of the letter-to-word hierarchy model, the picture of word code activation is one of a bottom-up, stimulus-driven process in which letter codes at lower levels of the perceptual system continue to feed their outputs into higher levels of codes until a word code reaches its recognition threshold. The purpose of the present experiments is to measure this dependence of word code activation on prior letter code activation.According to the letter-to-word processing viewpoint, any display that activates a word code must necessarily have activated the constituent letter codes as well, whether or not such activation is sufficient to exceed the recognition thresholds of the letter codes. It seems reasonable, therefore, to expect that words that share letters should facilitate each other via the shared letter code participation in their recognition. For example, if a person were to see the word store just prior to the word stone, then the word stone should be processed faster than if the word laugh had preceded stone. Specifically, if stone is...