Research shows that there is a relationship between academic outcomes and psychosocial outcomes. The current research aimed to understand the impact that developing literacy abilities in Year 7 and 8 students would have on psychosocial outcomes of self-esteem, self- efficacy and resilience. To complete this, students with literacy learning difficulties took part in an intensive reading intervention with a focus on morphology, phonology, comprehension, vocabulary and fluency. The research comprised of 20 Year 7 and 8 students who were divided into two different intervention groups based on baseline behavioural difficulties. Results and analysis indicated that all the students showed an increase in their literacy abilities. There were also significant changes found in some psychosocial outcomes, particularly academic self- efficacy. Pearson correlations revealed that there was a relationship between improved literacy abilities and psychosocial outcomes including global self-esteem, academic self-efficacy and resilience. This research showed that when literacy skills were improved in students, there was a positive impact on at least some areas of psychosocial development. The improvements in psychosocial outcomes and literacy abilities were similar for both intervention groups despite differences in levels of behavioural problems. This research indicates that psychosocial development is malleable and there is an opportunity for students in Year 7 and 8 with literacy learning difficulties to improve in their abilities through intervention.