Metaphor development in conjunction with verbal intelligence and linguistic competence in middle childhood and at the transition to early adolescence was investigated. 298 individuals between seven and ten years (chronological age) who attended grades two-four (mental age) were tested for metaphor processing by the Metaphoric Triads Task, for linguistic competence (HELD), and verbal intelligence (WISC-III). Chronological age significantly predicted metaphor processing with a breakpoint of 8.2 years regarding identification and comprehension, and 10.2 years regarding preference. Fourth-graders showed highest metaphor processing scores. Verbal intelligence significantly predicted metaphor processing; this effect became stronger with increasing age. Attributional metaphors were best understood and most preferred. Chronological and mental age are associated with metaphor processing in an age span that is seemingly crucial for metaphor development. Verbal analogical reasoning, concept formation, verbal abstraction, and semantic knowledge predicted metaphor comprehension. Understanding facts, principles, and social situations, and resultant inferential verbal reasoning predicted metaphor preference.