This paper investigates adult-child interaction in the early years of education. The intention is to understand how children's initiatives and practitioners' responses support and/or hinder children's agency. Our ethnographic data include 150 h of video data supplemented by observational field notes from a Finnish Early Childhood Education (ECE) centre with eight five-year-old children and two ECE practitioners. The video data were analysed abductively by using an Interaction Analysis method. The children's initiatives were found to manifest in several modes, namely asking a question, suggesting, challenging, refusing and ideating. The responses to these initiatives by the ECE practitioners included accepting, accepting after a rejection, adapting, rejecting or ignoring. The analysis points to ways in which adult-child relationships are negotiated in everyday activities, showing the relational nature of agency and suggesting that the ways in which adult engages in the child's initiations are an intricate part of children's agency.