This study explored the relationship between developmental changes in children's understanding of emotions and their use of affective content (Wilkinson, Barnsley, Hanna, & Swan, 1980) and affective structure (Brewer & Lichtenstein, 1982) in the production of stories. We hypothesized that children with an advanced understanding of emotions would make more use of both affective content and affective structure. This relationship was found only for affective content, which was more advanced in girls than boys. Affective structure did not relate to affective understanding or sex but, rather, to verbal intelligence. The implications of these results for the part played by psychological processes in children's story telling are discussed.