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Background: In 2018, it was found that only a quarter of Grade 3 children in India were reading at grade level. A growing demand for English education has further limited children's literacy achievement. Despite a strong evidence base in favour of using systematic phonics for building English literacy skills, many teachers in India continue to use rote‐methods of literacy instruction. Objectives: We aimed to examine the efficacy of GraphoLearn (GL) English Rime, a computer‐assisted reading intervention, in improving the foundational literacy skills of 1st and 2nd grade students who were attending an English medium school in India. Methods: A total of 136 students across 6 classrooms were randomly allocated to play either GL or a control math game over a 5‐week intervention period. Students were pre‐ and post‐tested on various English literacy skills using tasks built into the GL software as well as through oral and paper‐based tasks. Results and Conclusions: Students who played GL showed significantly greater and faster development on in‐game measures of letter‐sound knowledge, rime unit recognition, and word recognition as compared to students who did not play GL. In addition, GL resulted in greater effects on these measures for students with stronger English literacy skills prior to the start of the intervention. No differences were found between groups on the oral and paper‐based tasks. Implications: GL was able to quickly and effectively teach critical sub‐skills for reading. However, a lack of effects on the out‐of‐game measures opens the door for further discussion on the successful implementation of such interventions. Lay Description: What is already known about this topic:India has an ongoing literacy crisis with many children failing to acquire functional literacy skills.Under‐resourced schools,outdated pedagogical methods, and a demand for English‐medium education are partially to blame.Globally, technology is being increasingly looked at to help improve student learning levels across all subject areas.There are a lack of studies examining the efficacy of various ed‐tech tools to improve literacy in the context of India.What this paper adds:The study aimed to test GraphoLearn English (GL), a mobile game designed to teach and practice early reading skills through phonics with first and second graders.Results showed that children who played GL outperformed those who did not play on critical literacy skills such as letter‐sound knowledge and word recognition.In addition, GL was more effective for those who had higher pre‐existing English literacy skills.However, improvements were only seen on measures assessed in the game and not on measures assessed orally or on paper.Implications for practice and/or policy:GL and other educational technologies can be extremely effective tools which allow for an individualized learning experience.However, it is important that for any educational game, learning moves beyond the game itself.Teachers are critical players in this process and must ensure that tech‐based instruction is integrated with teacher‐led instruction.Policy makers and school administration must ensure that teachers are adequately trained on when, with whom, and how to use such technologies before they are introduced. [ABSTRACT FROM AUTHOR]