Two experiments with children between 5 and 8 years of age were designed to determine the effects of different types of similarity on analogical problem solving and to explore the cognitive components responsible for these effects. Three dimensions of similarity shared by the source and target problems were manipulated, and children's problem-solving performance was assessed with multiple measures. The results indicate that superficial and structural similarity facilitated the process of drawing analogies. More importantly, the present research demonstrated that procedural similarity influenced the process of applying analogues. The results also indicate that children as young as 5 and 6 years of age are capable of detecting and utilizing similarities in superficial features, structural relations, and procedural operations. Theoretical implications are discussed.