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It is well documented that aging is associated with cognitive declines in many domains. Yet it is a common lay belief that some aspects of thinking improve into old age. Specifically, older people are believed to show better competencies for reasoning about social dilemmas and conflicts. Moreover, the idea of aging-related gains in wisdom is consistent with views of the aging mind in developmental psychology. However, to date research has provided little evidence corroborating this assumption. We addressed this question in two studies, using a representative community sample. We asked participants to read stories about intergroup conflicts and interpersonal conflicts and predict how these conflicts would unfold. We show that relative to young and middle-aged people, older people make more use of higher-order reasoning schemes that emphasize the need for multiple perspectives, allow for compromise, and …