Despite the intense debate surrounding the use of orthographic analogy in the clue word paradigm, little is known about the skills and strategies children actually use and how these compare with their everyday reading of single words. This study, with 4- and 5-year-olds (N=125), supports previous work which suggests children rely on phonological, rather than orthographic, priming in the clue word task since children most frequently produced rhyming words in response to the clue word. The extent to which phoneme and rhyme-based skills, along with letter-sound knowledge, predicted children’s performance in the analogy task and in a test of single word reading was contrasted and compared. Our findings suggested that the balance of skills which children drew upon was determined by the demands of the task. The implications of these findings for the validity of the ‘orthographic’-analogy task and for teaching beginning readers is discussed.