The DRM paradigm was used to examine the role of global gist extraction in producing false memories in children and adults. First-graders, third-graders, and adults watched a videotape of a woman reading seven DRM lists, and then took a recognition memory test. Blocked (vs random) presentation and instructions to attend to the theme of lists were manipulated to enhance gist processing. In the first experiment, blocked presentation increased false recognition relative to random presentation in adults but not in first-graders or third-graders. In the second experiment, instructions to attend to list themes increased false recognition in third-graders and not in adults or first-graders. The results suggest a developmental pattern in which children become more adept at global gist extraction as they get older. These results are consistent with fuzzy trace theory's prediction of better gist processing as children grow older.