This study analyzed the relationship between phoneme recognition ability, reading ability, and story composing ability of 5 to 6 years old children. If there is a correlation between phoneme recognition ability and reading ability, a correlation between reading ability and story composing ability, and a correlation between phoneme recognition ability and story composing ability, in order to develop phoneme recognition ability, the environment should be provided in which children can experience the principle of alphabet combination and its response to sound in Korean language education, in other words, the combination of word sound to which the alphabet correspondence rule and the principle of alphabet structure are applied. Such an environment should be formed within the intentional care and understanding so children can learn the pronouncing structure, not via unconditional memorization and practice. (Yeonkyung Gho, 2002) This study selected 15 5-year-old (61-72 months) boys and 15 girls, and 18 6-year-old (73-84 months) boys and 12 girls at J child-care center located in Kimhae area. In order to find out the relationship between phoneme recognition ability and reading ability, and reading ability and story composing ability, and story composing ability and phoneme recognition ability, 1:1 tests for phoneme recognition ability, reading ability, and story composing ability were conducted in a separate space. The processing of this study's materials was done using SPSS WIN 18.0 program. To research the child's general characters, a frequency analysis was conducted. Moreover, to analyze the difference between phoneme recognition ability, reading ability, and story composing ability according to the age and sex among children's general characteristics, a t-test was conducted. To probe on the correlation between phoneme recognition ability and reading ability, reading ability and story composing ability, and phoneme recognition ability and story composing ability, Pearson correlation analysis was performed. The result of this study is as follows. First, there were ceilling effects between 5 to 6 year old children's phoneme recognition ability and reading ability, and a meaningful level of correlation was found. Especially, for phoneme recognition ability, when the age and sex were not included as parameters, the first sound performance was better than the end sound performance; also, handling syllables was superior to the handling of phoneme, and for phoneme, while the first sound handling was low, the end sound handling was superior. Second, between 5 to 6 year old children‘s reading ability and story composing ability, ceiling effects were shown, and meaningful level of correlation was found. When you look at the correlation between reading ability and story composing ability, a correlation between reading words, length of a story, beginning situation, and the reaction, as factors of reading ability, was found. That is, one can find that the higher reading words becomes as one of the factors of reading ability, the length of a story, beginning situation, and the reaction increase. Reading words with no meaning and the length of a story as factors in reading ability were showing a correlation at the meaningful level. Third, ceiling effects were shown between 5 to 6 year old children's phoneme recognition ability and story composing ability, and a meaningful level of correlation was found. As such, it can be shown that between story composing ability and phoneme recognition ability, as the story composing ability becomes higher, phoneme recognition ability gets higher as well. In this study, there was a meaningful correlation between a child's phoneme recognition ability, reading ability, and story composing ability; also, the superior phoneme recognition ability becomes, the superior reading ability is; the better reading ability is, the superior story composing ability becomes; and as the superior phoneme recognition ability is, the better story composing ability becomes. Accoding to the study result finding that the higher the level of 5 to 6 year old children' reading ability is, the better story composing ability and phoneme recognition ability become, a teaching strategy that can improve a child's phoneme recognition ability is needed.