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This paper takes the position that theories about individual differences in childhood and theories about cognitive development both would be enhanced if the two lines of research were integrated. The heuristic value of this position is illustrated in the context of analogical reasoning tasks. A general model of analogy solution and potential sources of variability in performance are outlined. Specifically, for both geometric and verbal analogy solution, individual and developmental differences are shown to be related to differences in task interpretation and understanding, definition of task relevant features and strategies, and the effectiveness and efficiency with which processes are executed. The specific findings as well as the general position are discussed in terms of implications for diagnosis and optimization in instructional settings. (Author/MP)