Previous studies on individual differences in mathematical abilities have shown that working memory contributes to early arithmetic performance. In this study, we extended the investigation to algebraic word problem solving. A total of 151 10-year-olds were administered algebraic word problems and measures of working memory, intelligence quotient (IQ), and reading ability. Regression results were consistent with findings from the arithmetic literature showing that a literacy composite measure provided greater contribution than did executive function capacity. However, a series of path analyses showed that the overall contribution of executive function was comparable to that of literacy; the effect of executive function was mediated by that of literacy. Both the phonological loop and the visual spatial sketchpad failed to contribute directly; they contributed only indirectly by way of literacy and performance IQ, respectively.