As a morphological impoverished language, how does word structure impact Chinese lexical processing in the brain? To address this issue, the current study examined the temporal signatures and localizations in the human brain for morphological priming effect (compound/derivation constitute priming vs. non-morphological priming) and word structure modulation (derivation vs. compound) in light of EEG-fNIRS fusion. Whilst morphological priming effect was manifested in behavioral performance and left prefrontal hemodynamic responses, word structure effect was prominent drawing on behavioral, ERP, and fNIRS data. Chinese derivations elicited greater activation in the frontal cortex and engaged more distributed network than lexicalized compounds. The results were interpreted by the differing connection patterns between constitute morphemes within a given word structure from spreading activation perspective. Together, Chinese word structure effect showed a distinct pattern from the dual-route mechanism in alphabetic languages. Meanwhile, the current study for the first time identified dissociable behavioral and neurophysiological responses of Chinese derivations and coordinate compounds.