This study examined children's and adolescents' narrative accounts and evaluations of an instance when they forgave a peer and an instance when they did not forgive, as well as their definitions of what it means to forgive. The sample included 100 participants in three age groups (7‐, 11‐, and 16‐year olds). Regardless of age, forgiveness and non‐forgiveness accounts differed in interpersonal features, such as how they responded when hurt and whether the peer apologized. The psychological features of the experiences involving their own thoughts and feelings also distinguished between events that were forgiven and those that were not, but did so for 16‐year olds and, sometimes, for 11‐year olds, but never for 7‐year olds. The distinct ways in which younger and older children narrated their experiences also were reflected in their evolving definitions of what it means to forgive, though children's definitions revealed aspects of their thinking not captured in their narratives. Finally, children at all ages judged forgiving favorably but, with age, their evaluations of not forgiving became less negative. These findings challenge the narrow conceptual and methodological lenses through which forgiveness had been examined, and underscore meaningful age differences in the ways children make sense of and evaluate forgiveness and non‐forgiveness.