5 experiments investigated children's understanding that expectations based on prior experience may influence a person's interpretation of ambiguous visual information. In Experiment 1, 4- and 5-year-olds were asked to infer a puppet's interpretation of a small, ambiguous portion of a line drawing after the puppet had been led to have an erroneous expectation about the drawing's identity. Children of both ages failed to ascribe to the puppet an interpretation consistent with the puppet's expectation. Instead, children attributed complete knowledge of the drawing to the puppet. In Experiment 2, the task was modified to reduce memory demands, but 4- and 5-year-olds continued to overlook the puppet's prior expectations when asked to infer the puppet's interpretation of an ambiguous scene. 6-year-olds responded correctly. In Experiment 3, 4- and 5-year-olds correctly reported that an observer who saw a restricted view would not know what was in the drawing, but children did not realize that the observer's interpretation might be mistaken. Experiments 4 and 5 explored the possibility that children's errors reflect difficulty inhibiting their own knowledge when responding. The results are taken as evidence that understanding of interpretation begins at approximately age 6 years.