The researches about English phonological awareness of Chinese children have got many valuable results. However, the research on Chinese phonological awareness of dialect children is rare. Chinese is a kind of special language with many dialects, and there are significant differences between dialects and standard language. Different opinions were brought forward on the dispute, whether the bilingual Children who have the experience of dialect and Putonghua has more advantages on phonological awareness. From the view of psychological linguistics, the gift of tongues or universal grammar acquired during the study of native language，can promote the second language learning; However, from the linguistics view, the native language interfere the second language learning. The bilingual children who have the experience of dialect and Putonghua have more advantages on Chinese phonological awareness than the only mandarin children, is it true? It needs investigate. 72 children (4 -6) took part in the experiment. There are 24 persons in each group, including 12 shanghai dialect children and 12 the only mandarin children. The Chinese phonological awareness of the subjects chosen was tested during this experiment, the information of children spoken language was collected using the method of hearing presentation. The test of phonological awareness is consisted of syllable awareness, onset-rhyme awareness and phoneme awareness. Because the Chinese is a kind of tonal language, and tune awareness is special, the task of tonal awareness is added in the experiment. The results show: the Chinese phonological awareness and tone awareness of Shanghai dialect children are better than the only mandarin children, although there were no significance between Shanghai dialect children and mandarins in the initial awareness and final awareness；And the bilingual’s advantage has not affected by the age. The research illuminates preschool children in Shanghai not only need to learn Chinese mandarin, but also encourage speaking the Shanghai dialect. Key Words phonological awareness，Shanghai dialect，preschool children