Background/Objectives: Previous research indicates that children with Developmental Language Disorder (DLD) face challenges learning from feedback, resulting in suboptimal performance and learning outcomes. Feedback processing, a key developing executive function, involves cognitive processes critical for goal-directed behavior. This study examined the neural mechanisms underlying feedback processing in school-age children with DLD compared to typically developing (TD) peers, focusing on midfrontal theta band (4–8 Hz) oscillations as an index of cognitive control and error monitoring. Methods: We measured midfrontal theta inter-trial coherence (ITC) and inter-site coherence (ISC) at midfrontal (FCz), lateral prefrontal (F3/F4), and lateral central (C3/C4) sites in children with and without DLD (n = 33, age 8–13 years) in response to feedback provision within a Wisconsin Card Sorting Test (WCST) in two time windows (200–400 ms, which is associated with the Feedback-Related Negativity, or FRN, and 400–600 ms, which is associated with the P3a). Results: Children with and without DLD showed elevated midfrontal theta oscillations in response to negative feedback that was followed by successful behavioral adjustments in the FRN time window. Activation in the P3a time window was only found in the TD group. Group differences were also noted in the inter-site coherence (ISC) associated with the effective processing of negative feedback. While in the TD group, effective processing of negative feedback was linked to high connectivity between midfrontal and right sensorimotor regions, in the DLD group, effective processing of negative feedback was associated with high connectivity between midfrontal and left sensorimotor sites. Conclusions: Differential ISC patterns in children with DLD may indicate that they employ alternative or compensatory neural strategies, possibly due to atypical right sensorimotor engagement.