This study examines the relationship between social competence and decoding of emotions in children aged between three and five years. Children were shown videotaped scenarios depicting emotional situations and were asked to choose which of three facial expressions, representing happiness, sadness and fear, would be most appropriate for the character in the situation. Children's level of social competence was assessed by a standardized questionnaire completed by their parents. Results showed that subjects with relatively higher social skills were better decoders than subjects with relatively lower social skills, and that decoding performance improved with age. The results are discussed in terms of the role of non‐verbal behavioural skills in general social competenc