Dyslexia is theorized to be caused by phonological deficits, visuo-attentional deficits, or some combination of the two. The present study contrasted phonological and visuo-attentional theories of dyslexia using a lexical decision task administered to adult participants with and without dyslexia. Homophone and pseudo-homophone stimuli were included to explore whether the two groups differed in their reliance on phonological encoding. Transposed-letter stimuli, including both TL neighbors and TL non-words, measured potential orthographic impairment predicted by visuo-attentional deficit theories. The findings revealed no significant difference in response time or accuracy between the groups for the homophone and pseudo-homophone stimuli. However, dyslexics were significantly slower and less accurate in their responses to the TL stimuli than controls. Thus, dyslexics presented deficits consistent with visuo-attentional theories, but not with the phonological deficit theory.