Developmental studies on heuristics and biases have reported controversial findings suggesting that children sometimes reason more logically than do adults. We addressed the controversy by testing the impact of children's knowledge of the heuristic stereotypes that are typically cued in these studies. Five-year-old preschoolers and 8-year-old children were tested with a card game version of the classic base-rate task. Problems were based on stereotypes that were familiar or unfamiliar for preschoolers. We also manipulated whether the cued stereotypical response was consistent (no-conflict problems) or inconsistent (conflict problems) with the correct analytic response that was cued in the problem. Results showed that an age-related performance decrease on the conflict problems was accompanied by an age-related performance increase on the no-conflict problems. These age effects were most pronounced for problems that adopted stereotypes that were unfamiliar for the 5-year-old preschoolers. When preschoolers were familiar with the stereotypes, their performance also started being affected. Findings support the claim that previously reported age-related performance decreases on classic reasoning tasks need to be attributed to the increased need to deal with tempting heuristics and not to a decrease in analytic thinking skills per se. (Contains 5 figures, 2 tables, and 4 footnotes.)