The purpose of the current investigation was to examine both social behaviors (i.e., aggression, shyness-withdrawal, and prosocial tendencies) and social understanding (i.e., attitudes and responses to such behaviors in hypothetical peers) of empathic and low empathic children. Participants were 136 children in kindergarten and grade one. Parents completed ratings of child empathy, shyness, aggression, and prosocial tendencies. Children were presented with vignettes depicting prosocial, aggressive, or shy peers, and asked questions concerning their understanding and responses towards these behaviors. Results indicated that as compared to low-empathic peers, more empathic children were reported to exhibit greater prosocial behavior and less aggression and social-withdrawal. In addition, empathic children demonstrated a more sophisticated understanding of shyness and aggression as compared to less empathic peers. These results suggest that empathic children are more socially sensitive, both in terms of their social understanding of others as well as their own social behaviors.