Previous research suggests that people encode gender starting in childhood. The present research asked whether gender diverse children (i.e., children whose gender identity or expression differs from that expected based on assigned sex) encode gender. Results showed that 3‐ to 5‐year‐old gender diverse participants ( N = 71), siblings of gender diverse children ( N = 52), and gender conforming controls ( N = 69) did not significantly differ in degree of gender encoding. These results converge with prior research to suggest that gender diverse children process gender in ways that do not differ from gender conforming children, and provide further evidence that gender encoding may be a common aspect of person perception in societies that support a binary view of gender.