The research aim was to improve the students‟ reading skill of grade VII-C of SMP Muhammadiyah Rawalo using fun-reading technique in academic year 2013/2014. The subjects of research were 21 students which consisted of 9 males and 12 females. This action research was conducted in two cycles. Each cycle consisted of planning, acting, observing, and reflecting. In collecting data, this research used reading test, observation, interview and questionnaire. The result of the research could be seen from the students‟ reading score: pre-test was 50.95, post-test 1 was 67.86, and post-test 2 was 85.24. Based on the result of the test, it could be concluded that it reached the success indicator because the number of students who reached KKM was >85%. Then, the students‟ observation result in cycle 1 was 47.62% and in cycle 2 was 78.57%. The improvement of the students‟ activities from cycle 1 to cycle 2 showed 30.95%. Further from the questionnaire, 82.14% students gave positive response to the implementation of the fun-reading technique during teaching and learning process. Based on the result of the research it could be concluded that the use of fun-reading technique could improve the students‟ reading skill.