Recent studies have accumulated to suggest that children, akin to adults, exhibit a processing advantage for formulaic language (e.g. save energy) over novel language (e.g. sell energy), as well as sensitivity to phrase frequencies. The majority of these studies are based on formulaic sequences in their canonical form. In natural language use, however, many formulaic sequences, collocations in particular, can be modified with words intervening in between the individual constituents (e.g. save energy → save all forms of energy). For some collocations, their nonadjacent forms are equally, and even more frequently used than their adjacent form. Despite this, it remains almost unknown whether the processing advantage and sensitivity to phrase frequencies persist in nonadjacent collocations in children. Based on reading times in a self-paced reading experiment, the current study found that two age groups – third and sixth graders – exhibited a processing advantage for Chinese collocations and sensitivity to phrase frequencies, with two and even four Chinese characters inserted in the middle. The persistence of processing advantage and sensitivity was affected by insertion length as well as age. These results are in line with a usage-based theoretical approach to language learning, processing and use.