Although the topic of forgiveness has received much attention in research with adults, little is known about the precursors of forgiveness in children. This is unfortunate because research suggests that the capacity to forgive is associated with numerous beneficial outcomes, such as improved social relationships and psychological well‐being. In this article, we examine the determinants and consequences associated with children's propensity to forgive. In the first part, we focus on four determinants: the role of children's characteristics, the relationship between victim and offender, the peer group, and family background. We propose that these determinants—together and on their own—predict children's forgiveness. In the second part, we provide an overview of the consequences of children's forgiveness, both at intrapersonal and interpersonal levels. We close with suggestions for research.