In this study, dynamic testing principles were applied to examine progression of analogy problem solving, the roles that cognitive flexibility and metacognition play in children's progression as well as training benefits, and instructional needs of 7‐ to 8‐year‐old gifted and average‐ability children. Utilizing a pretest training posttest control group design, participants were split in four subgroups: gifted dynamic testing (n = 22), gifted unguided practice (n = 23), average‐ability dynamic testing (n = 31), and average‐ability unguided practice (n = 37). Results revealed that dynamic testing led to more advanced progression than unguided practice, and that gifted and average‐ability children showed equivalent progression lines and instructional needs. For children in both ability categories, cognitive flexibility was not found to be related to progression in analogy problem solving or training benefits. In addition, metacognition was revealed to be associated with training benefits. Implications for educational practice were provided in the discussion.