Two experiments were used to investigate the scope of imitation by testing whether 36-month-olds can learn to produce a categorization strategy through observation. After witnessing an adult sort a set of objects by a visible property (their color; Experiment 1) or a nonvisible property (the particular sounds produced when the objects were shaken; Experiment 2), children showed significantly more sorting by those dimensions relative to children in control groups, including a control in which children saw the sorted endstate but not the intentional sorting demonstration. The results show that 36-month-olds can do more than imitate the literal behaviors they see; they also abstract and imitate rules that they see another person use. (Contains 3 tables, 4 figures and 1 footnote.)