Reductions in children's retroactive interference were examined with conceptual recoding. Children learned two 10-item lists of toys; items on the 2nd list could also be classified as vehicles. Some children were not told about this 2nd category, whereas others were told either at the end of acquisition or just prior to the retention test 24 hr later. The results showed that (a) children benefited from the recoding instruction, (b) younger but not older children failed to benefit from the recoding manipulation when it occurred just prior to the retention test, and (c) recoding reduced retroactive interference primarily through affecting storage processes. These results provide new evidence concerning the importance of making information distinctive in storage in children's retention.