The purposes of this study are to develop the English Literacy Diagnostic Assessment and to investigate if sixth graders have acquired the essential skills necessary for further literacy in junior high school. Critical literacy skills such as oral language learning, phonological awareness, letter-sound correspondence, and basic reading skills are included in the assessment to identify sixth graders' strengths and weaknesses. 2,170 sixth graders were randomly selected from 76 elementary schools in Taiwan to participate in the item analysis and 63% of the sixth graders passed the cut-off point (standard setting) in the assessment. Based on the item analysis, reliability and validity were investigated; in addition, analysis of each item for facility (difficulty) and B-index (discrimination) was undertaken. Item revision was made based on the results of the item analysis. The English Literacy Diagnostic Assessment demonstrates its reliability with a Cronbach's alpha value of 0.84. 78 out of 82 English teachers (95.12%) confirmed that the content of the English Literacy Diagnostic Assessment agreed with what pupils had learned at school, which affirms the content validity of the assessment. Regarding the Assessment's diagnostic purposes, the results show that the sixth graders had strengths in the section. "Matching Sounds with the Proper Words," as they correctly answered 90% of the items, and weaknesses in "Sound Discrimination" and "Reading Comprehension," as they obtained 50% correct answers. Follow-up remedial instruction is also recommended in this paper.