Background The Theory of Optimal Stimulation (Zentall & Zentall, Psychological Bulletin, 94, 1983, 446) posits that the relation between activity level (AL) and cognitive performance follows an inverted U shape where midrange AL predicts better cognitive performance than AL at the extremes. Methods We explored this by fitting linear and quadratic models predicting mental development from AL assessed via multiple methods (parent ratings, observations, and actigraphs) and across multiple situations (laboratory play, laboratory test, home) in over 600 twins (2‐ and 3‐year olds). Results Only observed AL in the laboratory was curvilinearly related to mental development scores. Results replicated across situations, age, and twin samples, providing strong support for the optimal stimulation model for this measure of AL in early childhood. Conclusions Different measures of AL provide different information. Observations of AL which include both qualitative and quantitative aspects of AL within structured situations are able to capture beneficial aspects of normative AL as well as detriments of both low and high AL.