Working memory (WM), the ability to monitor, process and maintain task relevant information on-line to respond to immediate environmental demands, is controlled by frontal systems (D'Esposito et al., 2006), which are particularly vulnerable to damage from a traumatic brain injury (TBI). This study employed the adult-based Working Memory model of Baddeley and Hitch (1974) to examine the relationship between working memory function and new verbal learning in children with TBI. A cross-sectional sample of 36 school-aged children with a moderate to severe TBI was compared to age-matched healthy Controls on a series of tasks assessing working memory subsystems: the Phonological Loop (PL) and Central Executive (CE). The TBI group performed significantly more poorly than Controls on the PL measure and the majority of CE tasks. On new learning tasks, the TBI group consistently produced fewer words than Controls across the learning and delayed recall phases. Results revealed impaired PL function related to poor encoding and acquisition on a new verbal learning task in the TBI group. CE retrieval deficits in the TBI group contributed to general memory dysfunction in acquisition, retrieval and recognition memory. These results suggest that the nature of learning and memory deficits in children with TBI is related to working memory impairment.