Research on the development of efficiency in spoken language understanding has focused largely on middle-class children learning English. Here we extend this research to Spanish-learning children (n=49; M=2;0; range=1;3–3;1) living in the USA in Latino families from primarily low socioeconomic backgrounds. Children looked at pictures of familiar objects while listening to speech naming one of the objects. Analyses of eye movements revealed developmental increases in the efficiency of speech processing. Older children and children with larger vocabularies were more efficient at processing spoken language as it unfolds in real time, as previously documented with English learners. Children whose mothers had less education tended to be slower and less accurate than children of comparable age and vocabulary size whose mothers had more schooling, consistent with previous findings of slower rates of language learning in children from disadvantaged backgrounds. These results add to the cross-linguistic literature on the development of spoken word recognition and to the study of the impact of socioeconomic status (SES) factors on early language development.