While previous studies have shown that drawing upon funds of knowledge benefits teaching and learning in many educational settings, there is little inquiry into funds of knowledge in Chinese heritage language education. Employing ethnographic methods, I explored the evidence of funds of knowledge in early childhood settings in a community-based Chinese heritage language school. The data sources included weekly observations, video recordings of class conversations, artifacts provided by the participants, and informal conversations. The findings present examples illustrating three kinds of funds of knowledge: families' daily life experiences, poetry reading practices, and cultural knowledge of folktales. The findings also show that the teachers drew upon the funds of knowledge to engage young heritage learners in joyful pedagogical activities and language learning. The implications include the need to value and use funds of knowledge in Chinese heritage language education and include Chinese language teachers' experiences and funds of knowledge in teacher preparation programmes.