This studt investigated the effects of reading aloud repeatedly with word instruction in L1 or L2onEFL children's vocablary learning. Four classes of fifth-grade children (in total 100 children) participated in the study. Two classes listened to four English stories with word instruction in chinese (L1 word Instruction Group ),and the other same four stories with word instruction in english (L2 word Instruction Group ). Based on their scores on the English final examination in the previous semester, the participants in each group were further divided into the higher proficiency and the lower proficiency subgroups. One week before the treatments, a receptive vocabulary pretest was administered. Then there were four learning sessions within the following four weeks, one session per week. In each session, each group listened to one story read aloud three times and received word instruction in L1 or L2 twice. At the end of each session, the participants took a productive vocabulary posttest and then a receptive vocabulary posttest. The results showed that L1 Word Instruction Group performed significantly better on the receptive vocabulary posttest than L2 Word Instruction Group. On the other hand, L2 Word lnstruction Group singificantly outperformed L1 Word Instruction Group on the productive vocabulary posttest. Moreover, whether L1 or L2 was used for word instruction, higher proficiency children performed better than lower proficiency children in both receptive and productive vocabulary learning. Finally, there was a significant interaction effect between students' proficiency levels and the languages used for the word instruction in productive vocabulary learning. That is, though L2 word instruction was more effective than L1 word instruction in helping all the participants increase productive vocabulary, the higher proficiency children benefited more from L2 word instruction in productive learning than the lower proficiency children. The findings of the study suggest that word instruction in L1 is more effect than word instruction in L2 in facilitating receptive vocabulary learning, while word instruction in L2 seems to make greater contribution to EFL children's productive vocabulary learning than word instruction in L1.Furthermore, higher proficiency children seem to benefit more from L2 word instruction than lower proficiency children in productive vocabulary learning.