This study compared the processing of non-binary morphemes in Spanish (e.g., todxs, todes) with the processing of canonical grammatical gender violations in Spanish pronouns (e.g., Los maestros… todas…). Using self-paced reading, the study examined how individual differences in working memory and gender/sex diversity beliefs affected language processing at three regions of interest (ROI): the pronoun, the pronoun +1, and the pronoun +2. Seventy-eight Spanish-English bilinguals completed two self-paced reading tasks, one with non-binary pronouns and another with grammatical gender violations, as well as a working memory task, a language dominance questionnaire, and a gender/sex diversity beliefs questionnaire. Processing costs were operationalized as longer reaction times (RTs) or inaccurate responses. Results showed overall processing costs for non-binary morphemes at all 3 ROIs, but no processing costs were observed in terms of accuracy or response times to the comprehension question. The results suggest that processing non-binary pronouns results in a small processing cost that does not affect overall sentence comprehension. The small observed processing cost was moderated by gender/sex diversity beliefs, with gender normative beliefs increasing RTs at the pronoun and affirmation of diverse gender identities beliefs reducing the RTs at the second spillover region. In contrast, grammatical gender violations only showed a processing cost at the first spillover region and were not moderated by working memory nor gender/sex diversity beliefs. Taken together, the results suggest that non-binary pronouns are processed differently than grammatical gender violations and that the small processing cost they impose can lead to good enough comprehension.