The purpose of this study was to investigate the relationship of perceived and actual physical competence to body composition in children. The sample included 150 children, 10-12 years of age who were classified as non-overweight or overweight/obese based on BMI cut-points from Cole et al. (2000). Body composition was measured by taking height and weight and calculating body mass index (BMI). Actual physical competence was assessed using the Test of Gross Motor Development (2nd Edition; Ulrich, 2000). Perceived physical competence was assessed using an expanded version of the Self-Perception Profile for Children (Harter, 1985). A two-way ANOVA was used to analyse the differences in actual and perceived physical competence between non-overweight and overweight/obese children. Results are reported in terms of the differences between actual and perceived physical competence levels of non-overweight and overweight/obese children. Implications of the results for physical and health education will be discussed.