To date, little research on competition has focused on young children (6–7-year-olds). A total of ninety-seven participants (51 boys and 46 girls) from two English primary schools completed two physical education (PE) lessons, which included three different activity challenges. The control group undertook the same activities in both lessons. The experimental group did likewise but were set high-, low-, or mid-level targets in lesson two based on individual scores from lesson one. The children completed a post-session questionnaire to assess (i) enjoyment levels and (ii) which activity they perceived they performed best in. The results found that children both improved and enjoyed the lesson most when low- or mid-level targets were set. Indeed, when targets were absent (in the control group), children’s competency scores regressed. Likewise, children perceived that they performed best in the activity where lower targets were set. Their perceived competency included both tangible and intangible reasons. From these results, it is recommended that for practitioners working with 6–7-year-old children, the most effective learning in competition uses individualised and competitive targets and challenges as a means to garner greater enjoyment in PE. Understanding each child’s self-efficacy and motivation is key, which requires ongoing evaluation and assessment during PE lessons.