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This paper provides a review of phonological deficits and their relationships to working and short-term memory in developmental dyslexia. Phonological theory states that developmental dyslexia follows from a dysfunction at the level of phonological representations. However, people suffering from dyslexia show more severe deficits in the phonological processes that involve other cognitive abilities such as working and short-term memory. While difficulties at the level of the phonological loop were emphasized by reference to the first models of short-term memory, the studies that draw on more recent theoretical models are more likely to evoke serial deficits in working and short-term memory. The overall results invite us to reconsider the relationship between working and short-term memory in developmental dyslexia, both at a theoretical and a clinical application level.