1. The study examined the relationship between children's emotional abilities, emotion regulation knowledge, and behavioral adjustment. 2. Emotional abilities were measured using an emotion matching task and a puppets procedure to assess recognition and generation of emotion regulation strategies. Behavioral adjustment was assessed using measures of externalizing problems, internalizing problems, and adaptive skills. 3. Results showed that children's performance on the emotion labeling dimension of the matching task and their recognition and generation of effective emotion regulation strategies predicted fewer externalizing problems and greater adaptive skills. Repeated ineffective strategies also predicted more externalizing problems.