The present study aimed to comprehensively examine social cognition processes in children with and without learning disabilities (LD), focusing on social information processing (SIP) and complex emotional understanding capabilities such as understanding complex, mixed, and hidden emotions. Participants were 50 children with LD (age range 9.4-12.7; 35 boys, 15 girls) and 50 children without LD matched on grade, age, and gender. Children analyzed 4 social vignettes using Dodge's SIP model and completed 2 emotional recognition tasks (pictures and stories) and 4 emotional knowledge tasks, such as providing definitions and examples for 5 emotions (e.g., loneliness, pride, embarrassment). Study results demonstrated that children with LD had major difficulties in SIP processes and consistent difficulties with the different tasks in the understanding of complex emotions and in higher emotional understanding capabilities, such as understanding that 2 conflicting emotions (love and hate) can be simultaneously experienced. We discuss the implications of such difficulties for the understanding of social competence in children with LD as well as their implications for social skills intervention.