A substantial body of research has established that emotion understanding develops throughout early childhood and has identified three hierarchical developmental phases: external, mental, and reflexive. The authors analyzed nonverbal intelligence and its effect on children's improvement of emotion understanding and hypothesized that cognitive level is a consistent predictor of emotion comprehension. In all, 366 children (182 girls, 184 boys) between the ages of 3 and 10 years were tested using the Test of Emotion Comprehension and the Coloured Progressive Matrices. The data obtained by using the path analysis model revealed that nonverbal intelligence was statistically associated with the ability to recognize emotions in the 3 developmental phases. The use of this model showed the significant effect that cognitive aspect plays on the reflexive phase. The authors aim to contribute to the debate about the influence of cognitive factors on emotion understanding. (Contains 3 tables and 1 figure.)