<p>This study investigated how two contextual orthographic properties, namely, interword spacing and neighboring orthographic context, impacted lexical retrieval in Thai. Thai orthography is an abugida in which vowels may not be written, and some words’ syllabic information may not be directly expressed by their graphemes. In such a case, readers will likely obtain the word’s phonological information after full lexical retrieval. Moreover, Thai does not use interword spacing to demarcate word boundaries, which potentially makes word recognition of those consonant-only words harder to process. In this study, we focused on the contextual effects of interword spacing and neighboring word orthography and examined how they impacted word recognition. Sixty-two Thai speakers read nine-word strings aloud as evidence of phonological processing, while their eye movements were tracked simultaneously. The stimuli consisted of a series of nine-word strings in which a consonant-only target word was embedded in the middle of the string. The design was 2 × 2: Interword spacing (spaced vs. unspaced) and neighboring orthography (with [‘cue’] or without [‘no cue’] vowel marks). Results showed that interword spacing facilitated early word identification but did not significantly affect lexical retrieval. In contrast, neighboring orthography had a significant effect: transparent neighboring words facilitated target-word retrieval. A significant interaction revealed that the facilitatory effect of interword spacing was more pronounced when orthographic cues were absent, which indicated that spacing could provide a segmentation signal that compensated for the lack of parafoveal orthographic information during word segmentation. These findings suggested that spacing and orthography serve distinct functions, with spacing guiding saccadic programming and orthography modulating lexical retrieval.</p>