Electrophysiological methods are based on Electroencephalogram (EEG) data, and EEG methods are used to assess on-line processing of cognitive activity focusing on the measurement of Event-Related Potentials (ERP). This method permits direct observation of information processing at different levels of analysis; it can provide crucial information regarding real-time imaging of the neural system's responses to sensory stimulation (Bentin, 1989). This chapter will review the different ERP components which are relevant to reading and language processing, in order to aid us in understanding the different stages of processing that occur in the brain during reading. In addition, the differences in ERP components between regular and dyslexic readers will be discussed with the aim of understanding the manner in which reading ability affects brain activity. This information, which has been collected during the past few years, constitutes a stepping stone toward the development of diagnostic tools for the early identification of individuals at risk for dyslexia as well as the development of intervention programs for its remediation.