Are children as young as 2 years old able to interact in groups of three? The study applied the family triad model first introduced by Parke, Power, and Gottman (1979) to the case of peer interaction. In Experiment 1, the model was refined for use in studies of peer interaction and applied to an existing dataset of 16 triads of newly acquainted 24-month-olds. In Experiment 2, the triadic coding system was further refined and applied to 12 single-sex triads of newly acquainted 2-year-olds. The findings demonstrated that 2-year-olds are capable of triadic interaction although the predominant interaction pattern in triads is still dyadic. Contrary to past reports, triadic interaction was more likely to occur when the children were not in conflict. Both girls and boys were capable of triadic interaction.