The present study investigates children's capacity to understand traits in a psychologically meaningful way. Participants included 18 individuals in each of 4 age groups: kindergarten (ages 5-6), 2nd grade (ages 7-8), 5th grade (ages 10-11), and adult. They heard a series of 6 short stories in which a main character performs an action based on a particular motive (positive, negative, or incidental) that results in either a positive or a negative emotional consequence for another character. Participants evaluated each main character and predicted the character's behavior and mental states in different social contexts. Participants in all age groups, even the 5- to 6-year-olds, made trait inferences that were influenced by motive information. These results provide evidence that young children are capable of more sophisticated reasoning about traits than has been suggested previously.