In peer culture, children develop social and moral orderings that justify exclusion of one or more peers – an area that has sparked debate among early childhood education groups. Therefore, the present study employed the idea of the power order or social and moral ordering of belonging to explore young children's narratives of social exclusion. We asked what story types can be identified in these narratives and how exclusion is reasoned in them. The data consisted of 25 narratives produced by 12 children, aged 4–6 years, via the Story Magician's Playtime method in early childhood education and care in Finland. Four story types were identified (repulsion, hierarchy, adult as mediator and conciliation), in which the moral reasoning for and conclusion of the exclusion differed. The diverse story types manifested complex negotiations, meaning-makings and diversity of emotions, in which children transcended dichotomous, black-and-white moral reasoning. Children's narratives illuminate how they negotiate social orders in situational interactions. Rules prescribed for children from adults are reproduced, modified and reinterpreted in these interactions. The narratives imparted the contradictions between preserving specific rules and members for ongoing play and the altruistic all-can-participate rule. The study highlighted the importance of addressing exclusion situations in ECEC. If social exclusion is not reflected on with children, they are left alone to solve these situations, which may cause a vicious cycle for repeatedly excluded children.