The purpose of  this study was to investigate the effect of chunking on developing EFL literacy skills among preparatory school pupils. The participants were eighty pupils in second year from  25 January Preparatory School in Benha at Quliobeya Governorate. The participants of the study were divided into two  groups, the experimental group (N=40) and the control group (N=40). The pre literacy test was administered to the participants before the treatment. Then, the experimental group was taught chunking using the lexical approach while the control group was taught using the traditional method. Then the post literacy test was administered to both groups. Results of the study revealed that the program using chunking was effective in developing EFL literacy skills among the preparatory school pupils.