Introduction Increasing interest is seen for early and late memory consolidation and accelerated forgetting, but little is known about these phenomena in children with epilepsy. The present study analysed the trajectory of learning and retention in typically developing children and children with epilepsy on a story learning test. Methods 285 children, 126 typically developing children and 159 children with epilepsy, in ages between 4 and 10 years and Full-Scale IQs ≥ 75, were given a specifically designed story learning test (iter-SEIN). The learning phase included Initial reading and a Free Recall trial with 10 Questions, and up to three repetition trials with Questions. Trials of Delayed Free Recall and Questions followed after half an hour, the next day and 1 week later. With several repeated measures analyses of variance, level of performance and gains or losses over time were analysed. Results Age-dependent learning was seen after repetitions. On the Questions, typically developing children outperformed children with epilepsy increasingly, due to smaller gains after the second trial. Learned information was similarly preserved. Free Recall showed similar performance for both groups up to day 2. A week later, a conspicuous loss of information was observed in the children with epilepsy, whilst typically developing children retained the information. On index scores, reliable cognitive loss of information was seen in epilepsy in 24.5% of the children. Semantic neuropsychological tasks and severity measures of epilepsy were associated with level of performance. Discussion The results provided evidence for early decelerated learning and late accelerated forgetting in children with epilepsy.