This study examines the differences in third-party punishment and compensation behaviors in 3- to 5-year-old children (N = 114) in fair and unfair distribution contexts. Using both third-party punishment and compensation paradigms, the study involved Chinese-speaking preschool children. The results showed: (1) Children's intention and degree of third-party compensation and punishment were significantly higher in response to unfair distribution compared to fair distribution. (2) Age significantly influences children's intervention behaviors, with younger children more likely to intervene in fair distributions, while intervention in fair outcomes gradually decreases with age. (3) In the context of unfair distributions, children showed a greater inclination to choose third-party compensation over punishment, with compensation levels notably higher than those for punishment. These findings provide insights into the age-related development of fairness awareness and third-party intervention behaviors in children, highlighting a preference for third-party compensation among preschool children in China.