Readers of different ages and across different languages routinely process information of upcoming words in a sentence, before their eyes move to fixate them directly (parafoveal processing). However, there is inconsistent evidence of similar parafoveal processing in a reader's second language (L2). In this eye movement study, the gaze-contingent boundary paradigm (Rayner, 1975a) was used to test whether parafoveal processing of orthographic information is an integral part of both beginning and proficient L2 reading. The eye movements of beginning L2-learners (n = 53, aged 11-14 years) and highly proficient L2-users (n = 56, aged 19-65 years) were recorded while they read sentences in their first language (L1) German and L2 English. Sentences each contained a cognate target word (e.g., English: tunnel, German: Tunnel). The parafoveal preview of the targets either (a) preserved the spelling and meaning of the target (identity condition), (b) preserved letter identities but transposed the position of two adjacent letters (transposed-letter [TL] condition, e.g., tunenl/Tunenl), or substituted the identity of two adjacent letters (substituted-letter condition, e.g., tunocl/Tunocl). TL previews elicited longer early first-pass reading times than identity previews in both L1 and L2 reading in children and adults, suggesting that letter position was processed parafoveally. Substituted-letter previews resulted in longer reading times than TL previews in children and adults in L1 and L2, suggesting that letter identity information was processed independently of position information. These results suggest that letter position and identity information are extracted from the parafovea during L1 and L2 reading, facilitating word recognition in children and adults.