Adults' source judgments are more accurate when they focus on speakers' emotions than when adults focus on their own emotions. Focusing on speakers may lead to better source memory because it encourages processing of the perceptual characteristics of the source and binding of that information to the content of what is being said. The purpose of the current work was to evaluate whether young children's source memory similarly benefits from this outward encoding focus and whether this effect changes developmentally. In Experiment 1, when 4- and 5-year-olds heard an audiotape of two dissimilar speakers, only the 5-year-olds showed better source memory when asked to adopt an other-focus. In Experiment 2, when 4- and 5-year-olds watched a videotape of two similar speakers, the same pattern was found. However, in Experiment 3, when 4-year-olds watched a videotape of two dissimilar speakers (a more optimal encoding condition in which 5-year-olds showed ceiling performance), 4-year-olds benefited from taking an other-focus during encoding. Overall, the data suggest that the benefit for source memory of focusing on another person develops over the preschool years.