This longitudinal study focuses on the development of reading abilities and its relationship with social and emotional integration in students with and without special educational needs (SEN). The first measurements (Time 1 [T1]) took place at the end of 5th grade; the second series (Time 2 [T2]) were 1 year later. Participants were 18 students with SEN, 18 students without SEN matched on intelligence with the SEN group, and 18 students without SEN with average IQs, all from integration classes in regular secondary education in Austria. The students with SEN consistently showed the lowest reading abilities in reading fluency of words and nonwords, sentence comprehension, and text comprehension, followed by the low-IQ students. The average-IQ students always showed the highest reading abilities. Students with SEN reported being less socially integrated than low-IQ students without SEN. Average-IQ students show the highest social integration. However, students with SEN showed a similar level of emotional integration as their peers. Regression analyses showed, as expected, that T1 measures of reading fluency of words and nonwords as well as sentence comprehension and text comprehension all predicted T2 measures of these variables. Intelligence was an additional predictor for word reading fluency in the average-IQ group only. Social and emotional integration appeared to be additional predictors for text comprehension at T2 for students with SEN but not for the other groups. The results of this study suggest that students will learn better when they feel socially and emotionally integrated.