Hebb repetition learning is a fundamental learning mechanism for sequential knowledge, such as language. However, still little is known about its development. This fMRI study examined the developmental neural substrates of Hebb repetition learning and its relation with reading abilities in a group of 49 children aged from 6 to 12 years. In the scanner, the children carried out an immediate serial recall task for syllable sequences of which some sequences were repeated several times over the course of the session (Hebb repetition sequences). The rate of Hebb repetition learning was associated with modulation of activity in the medial temporal lobe. Importantly, for the age range studied here, learning-related medial temporal lobe modulation was independent of the age of the children. Furthermore, we observed an association between regular and irregular word reading abilities and the neural substrates of Hebb repetition learning. This study suggests that the functional neural substrates of Hebb repetition learning do not undergo further maturational changes in school age children, possibly because they are sustained by implicit sequential learning mechanisms which are considered to be fully developed by that age. Importantly, the neural substrates of Hebb learning remain significant determinants of children's learning abilities, such as reading.