Previous tasks have shown that preschool and early elementary school-children typically have trouble learning and identifying homonyms (Peters & Zaidel, 1980; Mazzocco, 1989). It is possible that a one-to-one mapping assumption or a lack of metalinguistic skills makes homonym learning and identification particularly difficult. In three experiments we examined a total of 60 three-year-olds' ability to pick out homonym pairs, and the extent to which they realize that although homonyms share a common label, they represent two different categories. In Experiment 1 subjects were asked to identify homonym pairs. In Experiment 2, homonym pairs and non-homonym pairs were labelled, then children were asked whether the pairs had the same name, and whether they were the same kind of thing. In Experiment 3 children were shown one-half of each of several homonym and non-homonym pairs, then asked to identify a name match and a category match from a set of pictures. From these experiments we conclude that children have the metalinguistic skills necessary to identify homonym pairs; moreover, they realized that homonyms represent two different categories. Finally, if children have a one-to-one mapping assumption, it is not strong enough to prevent them from acquiring homonyms.