Social competence and Theory of Mind (ToM) abilities are essential components for successful academic and social functioning. The current study examines the relationship between social competence and children's ToM abilities in an effort to discover how social competence influences ToM abilities. One hundred and twenty-four prekindergarten children were included in the study. Results indicate that social competence, as measured by teachers, influences children's ability to understanding the mental state of others, when language is controlled. Attention/cognitive skills are the component in social competence found to be the most influential variable to ToM performance, explaining 7% of the variance. Through the use of simple strategies teachers and parents have the ability to facilitate ToM understanding. However more research is still needed to examine this relationship.