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Dyslexia is a learning disability, which affects the ability to read and spell correctly. Special schools for children with dyslexia focus on individual growth, learning and psychological difficulties faced by the child. In this paper, we describe the design, development and testing of Tiblo (Tangible Interactive BLOcks), a tangible learning aid for children with dyslexia in the age group of 8 to 12 years. Tiblo has been specifically designed keeping in mind the psychological and emotional effects of dyslexia. We explain the process and results of an ethnographic study conducted at a school for children with dyslexia; the resulting concept development and prototyping. Further, we outline the testing process with the students at the school and the results of the same. The results showed that the children have a greater engagement in their classroom activities and there is an improvement in their retention abilities on using Tiblo. Also, they had a very strong sense of attachment and ownership towards the blocks and like to personalize it. This was in sharp contrast with other digital learning aids which offer a symptomatic and subject specific approach to aiding children with dyslexia and hence do not develop a personal one to one relationship with the child.