This exploratory investigation of children's teasing consists of a literature review, theory development, and the report of preliminary data. We propose that teasing consists of a communication, directed by an agent to a target, which synthesizes elements of aggression, humor, and ambiguity. Teasing messages are not meant literally, and often they exaggerate or overstate the intended derogation. For the target, making an attribution for the teaser's intention may be a complex task, and incorrect decoding may cause misunderstandings. Teasers see their motives as benign and friendly, whereas targets, especially young children, often experience teasing as hostile and painful. Social patterns suggest that teasing is an expression of status dominance and a mechanism for promoting conformity within groups. Much teasing occurs as a power-oriented interaction in which bullies dominate unassertive children, but there are also playful and beneficial aspects of teasing.