Abstract This study tested children's emotion recognition as a mediator of associations between their exposure to hostile and cooperative interparental conflict and their internalizing and externalizing symptoms. From 2018 to 2022, 238 mothers, their partners, and preschool children ( M age = 4.38, 52% female; 68% White; 18% Black; 14% Multiracial or another race; and 16% Latinx) participated in three annual measurement occasions. Path analyses indicated that Wave 1 observations of hostile interparental conflict predicted residualized increases in children's emotion recognition accuracy (i.e., angry, sad, and happy) at Wave 2 ( β = .27). Wave 2 emotion recognition, in turn, predicted residualized decreases in children's internalizing symptoms at Wave 3 ( β = −.22). Mediational findings were partly attributable to children's accuracy in identifying angry and high‐intensity expressions.