This study aimed to develop a context-based model of content–pedagogical competencies among lower primary school teachers teaching Reading and Writing. Given the foundational role of early literacy in students’ academic development and the importance of instructional quality, understanding teachers’ professional competencies in this domain is essential. Using a qualitative design, the study employed Strauss and Corbin’s systematic grounded theory approach. Data were collected through semi-structured interviews with 15 lower primary teachers with at least five years of experience teaching Reading and Writing. Theoretical purposive sampling continued until theoretical saturation was reached. Data were analyzed through open, axial, and selective coding. Findings identified contextual constraints, teachers’ coping and instructional strategies, core dimensions of content–pedagogical competencies, and their individual and educational consequences. Integrating these categories, a dynamic, process-oriented model was developed, conceptualizing content–pedagogical competency as an interactive phenomenon shaped by individual, organizational, and socio-cultural conditions and professional actions. The study contributes a grounded, context-sensitive model that moves beyond fragmented skill lists toward explaining how competencies develop and are enacted in practice, with implications for teacher education, professional development, and early literacy policymaking in schools.