Although "hindsight bias" (the "I knew it all along" phenomenon) has been documented in adults, its development has not been investigated. This is despite the fact that hindsight bias errors closely resemble the errors children make on theory of mind (ToM) tasks. Two main goals of the present work were to (a) create a battery of hindsight tasks for preschoolers, and (b) assess the relation between children's performance on these and ToM tasks. In two experiments involving 144 preschoolers, 3-, 4-, and 5-year olds exhibited strong hindsight bias. Performance on hindsight and ToM tasks was significantly correlated independent of age, language ability, and inhibitory control. These findings contribute to a more comprehensive account of perspective taking across the lifespan.