This study compared the effectiveness of two encoding strategies (peg system vs. conceptual understanding) on serial learning. Sixty Chinese 5th graders from a primary school in Hong Kong participated in training on the two strategies in two consecutive weeks. While half of the students learned peg system in the first week and conceptual understanding in the second week, the other half of the students learned with the reverse order. Results showed no significant difference between the two strategies on immediate recall of the two 10-item lists. Yet in delayed recall, students using conceptual understanding recalled more words in correct serial order than their counterparts using peg system. Results suggested that conceptual understanding is more effective than the peg system in long-term serial learning at school. This finding has practical implications for teaching and learning.