Young children's communication has often been characterized as egocentric. Some researchers claim that the processing of language involves an initial stage that relies on egocentric heuristics, even in adults. Such an account, combined with general developmental difficulties with late-stage processes, could provide an explanation for much of children's egocentric communication. However, the experimental data reported in this article do not support such an account: In an elicited-production task, 5- to 6-year-old children were found to be sensitive to their partner's perspective. Moreover, in an on-line comprehension task, they showed sensitivity to common-ground information from the initial stages of language processing. We propose that mutual knowledge is not distinct from other knowledge relevant for language processing, and exerts early effects on processing in proportion to its salience and reliability.
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