This study looked at how six infants in a group child care setting produced and appreciated humor. With the use of multiple qualitative methods, participant and non-participant observations, journal writing, videotaping, interviewing, and document review this study looked at children's humor as indicated through their smiles and laughter. Findings of this study suggest that there are two theories that best describe young children's humorous behavior, namely the Theory of the Absurd and Empowerment Theory. The Theory of the Absurd includes events that are out of the ordinary and violate children's existing schemata. It emphasizes the incongruity of an event through funny gestures or positions, the incongruous use of materials and actions. Empowerment Theory describes young children's ability to violate the expectations of their caregivers and use humor to empower themselves. It highlights a different form of incongruity which has to do with the violation of expectations, intentionally or otherwise.