An attempt was made in this study to examine the development of capacity for moral judgment in Indian children (N=120) with respect to gender difference and economic status. The study was conducted following a 3 x 2 x 2 factorial experimental design with 3 age levels (6-7, 8-9, 10-11 years), two sex groups (male & female) and two levels of economic status (high & low} . The results revealed significant main effect of age. Also, age x sex and age x economic status interactions yielded significant effects. The interaction of the three independent factors was also found to be significant. It was concluded that although the capacity for moral judgment increases with age the pattern is significantly mediated by factors of sex and economic status.