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Aims and objectives/purpose/research questions: We compared the processing of morphologically complex derived vs. inflected forms in native speakers of German and highly proficient native Russian second language (L2) learners of German. Design/methodology/approach: We measured morphological priming effects for derived and inflected German words. To ensure that priming effects were genuinely morphological, the design also contained semantic and orthographic control conditions. Data and analysis: 40 native speakers of German and 36 native Russian learners of L2 German participated in a masked-priming lexical-decision experiment. For both participant groups, priming effects for derived vs. inflected words were compared using linear mixed effects models. Findings/conclusions: While first language (L1) speakers showed similar facilitation effects for both derived and inflected primes, L2 speakers showed a difference between the two prime types, with robust priming effects only for derived, but not for inflected forms. Originality: Unlike in previous studies investigating derivation and inflection in L2 processing, priming effects for derived and inflected prime–target pairs were determined on the basis of the same target word, allowing for a direct comparison between the two morphological phenomena. In this respect, this is the first study to directly compare the processing of derived vs. inflected forms in L2 speakers. Significance/implications: The results are inconsistent with accounts predicting general L1/L2 differences for all types of morphologically complex forms as well as accounts assuming that L1 and L2 processing are based on the same mechanisms. We discuss theoretical implications for L2 processing mechanisms, and propose an explanation which can account for the data pattern. [ABSTRACT FROM AUTHOR]