Acquiring mastery in reading is considered one of the primary academic skills during the early years of elementary school. Additionally, attaining proficiency in reading during the early grades of elementary school serves as a strong predictor for future academic achievements and overall success in life. This cross-sectional study aimed to examine the effect of several linguistic and cognitive variables on decoding abilities in the Bosnian language. The sample consisted of 153 children in the 2nd to 5th grades of elementary school. To assess decoding abilities, we employed tasks involving reading real words and non-words (pseudowords). The key predictors for both tasks included phonological awareness, rapid automatized naming of letters, working memory, and processing speed. Both models accounted for approximately 64% of the variance in the scores, signifying a substantial advancement compared to existing models of reading in the Bosnian language. The results of this study may contribute to the development of targeted and effective reading interventions in early elementary education.