This study examined emotion understanding and reconciliation in 47 (24 girls) 4-6-year-old preschool children. Participants first completed emotion recognition tasks and then answered questions regarding reconciliation tendencies and affective perspective-taking in a series of overt and relational aggressive conflict scenarios. Children's teachers reported their overt aggression, relational aggression, and prosocial behaviors in daily life. The results indicated that children's emotion recognition ability was associated with their reconciliation tendency in both types of conflict scenarios. Furthermore, children's affective perspective-taking in conflicts was associated with their reconciliation tendencies in the overt aggression conflict scenarios, but not in the relational aggression conflict scenarios. Additionally, we found that children's affective perspective-taking in overt aggression conflict scenarios was associated with their daily prosocial behaviors. The results suggest that the ability of detecting and recognizing others' emotions may facilitate conflict reconciliation and positive peer interactions.