People with dyslexia have difficulty learning to read and many lack fluent word recognition as adults. In a novel task that borrows elements of the 'word superiority' and 'word inversion' paradigms, we investigate whether holistic word recognition is impaired in dyslexia. In Experiment 1 students with dyslexia and controls judged the similarity of pairs of 6- and 7-letter words or pairs of words whose letters had been partially jumbled. The stimuli were presented in both upright and inverted form with orthographic regularity and orientation randomized from trial to trial. While both groups showed sensitivity to orthographic regularity, both word inversion and letter jumbling were more detrimental to skilled than dyslexic readers supporting the idea that the latter may read in a more analytic fashion. Experiment 2 employed the same task but using shorter, 4- and 5-letter words and a design where orthographic regularity and stimuli orientation was held constant within experimental blocks to encourage the use of either holistic or analytic processing. While there was no difference in reaction time between the dyslexic and control groups for inverted stimuli, the students with dyslexia were significantly slower than controls for upright stimuli. These findings suggest that holistic word recognition, which is largely based on the detection of orthographic regularity, is impaired in dyslexia.