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Research consistently finds that language and theory of mind are interrelated. The content and qualities of language that specifically predict theory of mind remain under investigation and the question of why language might impact theory of mind development is open. In this chapter we analyze and highlight current findings and theory addressing theory of mind and language. The principal focus is upon typically developing children between ages 2 and 5, a period characterized by extensive development in language and social understanding. We propose that the study of young children's narrative development can inform how and why language and theory of mind are connected. False belief understanding and narrative comprehension share many similarities and this association provides a promising avenue for future work.