The authors investigate the contribution of children's early comprehension of relational terms and morphosyntactic knowledge to the development of narrative competence in kindergarten and Grade 1. Narrative competence was assessed through the cohesion, coherence, and structure of children’s productions. The participants in this study were 714 Italian children. The authors measured their oral narrative competence through a storytelling task at the beginning and end of the kindergarten year. A total of 115 children were randomly selected and followed through Grade 1, and their narrative competence was measured again. According to the path analysis model, early morphosyntactic knowledge contributes to explain narrative competence in Grade 1. Early comprehension of relational terms contributes to narrative competence at the end of the school year. These findings confirm the importance of exploring the influence of early language skills on narrative competence development and suggests early intervention at the level of language antecedents of narrative competence.