Purpose: Sign language, like spoken language, incorporates phonological and articulatory (or motor) processing components. Thus, the learning of novel signs, like novel spoken word forms, may be problematic for children with developmental language disorder (DLD). In the present work, we hypothesize that phonological and articulatory deficits in novel sign repetition and learning would differentiate preschool-age children with DLD from their typical peers. Method: Children with DLD ( n = 34; aged 4–5 years) and their age-matched typical peers ( n = 21) participated. Children were exposed to four novel signs, all iconic, but only two linked to a visual referent. Children imitatively produced these novel signs multiple times. We obtained measures of phonological accuracy and articulatory motion stability as well as of learning of the associated visual referent. Results: Children with DLD showed an increased number of phonological feature (i.e., handshape, path, and orientation of the hands) errors when compared with their typical peers. While articulatory variability did not overall differentiate children with DLD from typical peers, children with DLD showed instability in one novel sign that obligated bimanual oppositional movement. Semantic aspects of novel sign learning were unaffected in children with DLD. Conclusions: Deficits that have been documented in phonological organization of spoken words in children with DLD are also evident in the manual domain. Analyses of hand motion variability suggest that children with DLD do not show a generalized motor deficit, but one that is restricted to the implementation of coordinated and sequential hand motion.