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In this two‐year longitudinal study, we sought to examine the developmental relationships among early narrative listening comprehension and language skills (i.e., vocabulary knowledge, sentence memory, and phonological awareness) and the roles of these factors in predicting narrative listening comprehension at the age of 6 years. We also sought to examine the role of inference‐making skills as longitudinal and concurrent predictors of other language skills and listening comprehension from the age of 4 to 6 years. One hundred thirty Finnish‐speaking children participated in the study. A theoretical model of the developmental relationships among the variables was proposed and the associations were analyzed by means of path analysis. Results showed that inference skills, assessed through picture‐book viewing, made a significant and unique contribution to variation in later narrative listening comprehension …