Forty‐five fifth grade children participated in a study to examine whether obese children differ in self‐esteem from their average‐weight peers. The study also explored whether obese children use the processes of discounting and cognitive distortion to maintain self‐esteem. The obese children had lower scores than average‐weight children in global self‐worth, and in perceived competence in physical appearance and social acceptance, but not in scholastic competence, athletic competence, or behavioral conduct. The pattern of results indicate that obese children do not discount the importance of physical appearance and weight, but use distortion. Further, the use of distortion by obese children was associated with more positive self‐perceptions. Although the use of defensive cognitions was effective in enhancing obese childrm's global self‐worth, it was not powerful enough to prevent completely the negative effects of obesity