Difficulty recognizing negative emotions is linked to aggression in children. However, it remains unclear how certain types of emotion recognition (insensitivities vs. biases) are associated with functions of aggression and whether these relations change across childhood. We addressed these gaps in two diverse community samples (study 1: aged 4 and 8; N = 300; study 2: aged 5 to 13, N = 374). Across studies, children performed a behavioral task to assess emotion recognition (sad, fear, angry, and happy facial expressions) while caregivers reported children’s overt proactive and reactive aggression. Difficulty recognizing fear (especially in early childhood) and sadness was associated with greater proactive aggression. Insensitivity to anger – perceiving angry faces as showing no emotion – was associated with increased proactive aggression, especially in middle-to-late childhood. Additionally, greater happiness bias – mistaking negative emotions as being happy – was consistently related to higher reactive aggression only in early childhood. Together, difficulty recognizing negative emotions was related to proactive aggression, however, the strength of these relations varied based on the type of emotion and developmental period assessed. Alternately, difficulty determining emotion valence was related to reactive aggression in early childhood. These findings demonstrate that distinct forms of emotion recognition are important for understanding functions of aggression across development.