We examined the influence of prior expectations on 4- to 10-year-olds' and adults' preferences and emotions following an undesirable outcome (N = 205; 49% female, 51% male; 6% Asian, 1% Black, 13% Hispanic/Latino [non-White], 57% White, 18% multiracial, and 5% another race/ethnicity; 75% with a college-educated parent). Participants attempted to win a chance game with multiple prizes; the worst prize being a pencil. The game was rigged so that half of the participants lost, and the other half won. Regardless of the game outcome, everyone received a pencil. For winning participants (high-expectation condition), the pencil was worse than the prize they expected; whereas for losing participants (low-expectation condition), the pencil was better than the "nothing" they expected. Participants rated how much they liked and felt about the pencil preoutcome, postoutcome, when imagining having held an alternative prior expectation, and after learning that everyone received a pencil. Results showed that 6- to 10-year-olds and adults with low (vs. high) expectations liked the pencil more, with emotion ratings trending in the same direction. Prior expectations did not influence younger children's affective experiences. More participants with low (vs. high) expectations also expressed a positive outlook about the pencil, which increased with age and correlated with higher postoutcome emotions. More adults than children explained emotions as caused by thoughts, and only adults consistently reasoned that their preferences and emotions would have differed had they held alternative prior expectations. Once knowing that everyone received a pencil, 6- to 10-year-olds and adults liked the pencil more and felt better.