Reading disability (RD) is associated with phonological deficits; however, it remains unknown how the phonological deficits change with age as reflected in foreign speech perception and production. In the current study, we compared brain activation during Spanish speech perception and production in native Chinese children and adults with or without RD using fNIRS. Our findings revealed greater similarity to a native Spanish speaker in vowels’ frequency formants in typical controls than in individuals with RD, and in children than in adults. In the brain, we found reduced developmental differences in the right inferior frontal gyrus (IFG) and dorsolateral prefrontal cortex (DLPFC) in individuals with RD than in controls during Spanish speech perception, suggesting slowed development in these regions. Furthermore, using multivariate pattern analysis (MVPA), we found that activation patterns in the left MTG, premotor, supplementary motor area (SMA), and IFG could serve as reliable markers of RD. We provide behavioral and neurological evidence for the developmental differences in impaired speech perception and production in RD readers which can serve as markers of RD.