Prior research suggests that the development of speech perception and word recognition stabilises in early childhood. However, recent work suggests that development of these processes continues throughout adolescence. This study aimed to investigate whether these developmental changes are based solely within the lexical system or are due to domain general changes, and to extend this investigation to lexical-semantic processing. We used two Visual World Paradigm tasks: one to examine phonological and semantic processing, one to capture non-linguistic domain-general skills. We tested 43 seven- to nine-year-olds, 42 ten- to thirteen-year-olds, and 30 sixteen- to seventeen-year-olds. Older children were quicker to fixate the target word and exhibited earlier onset and offset of fixations to both semantic and phonological competitors. Visual/cognitive skills explained significant, but not all, variance in the development of these effects. Developmental changes in semantic activation were largely attributable to changes in upstream phonological processing. These results suggest that the concurrent development of linguistic processes and broader visual/cognitive skills lead to developmental changes in real-time phonological competition, while semantic activation is more stable across these ages.