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• Normative value of activity engagement affects children's happiness attributions. • This effect is similarly present in late, middle, and early childhood. • The effect is similar for happiness attributions for the self and others. • Expected engagement amounts for being happy and being healthy are correlated. • Young children even view normatively bad engagement as less enjoyable. Individuals are typically happy when engaging in enjoyable activities. But many enjoyable activities could be harmful when engaged in to excess. Do children consider the normative goodness of activity engagement levels when attributing happiness? To examine this question, we presented children with enjoyable activities that are often harmless in moderation but harmful in excess. When told that engaging in their favorite activities at their preferred amount was either normatively good (i.e., harmless and permitted) or normatively bad (i.e., harmful and forbidden), 10- and 11-year-old and 7- and 8-year-old children (Study 1) and even 5-year-old children (Studies 2 and 3 with simplified methods) attributed less happiness when the engagement level was normatively bad than when it was normatively good both to themselves and to another child. Young children also perceived normatively bad engagement as less interesting and pleasurable (Study 3). The findings suggest that children consider the normative goodness of activity engagement (rather than enjoyment alone) when attributing happiness, illuminating how children understand happiness. [ABSTRACT FROM AUTHOR]