This study sought to investigate the way in which young children respond to and make aesthetic judgements about art works made by their peers. Grounded Theory was deemed to be an appropriate research methodology enabling a scrutiny of serendipitous experiences as well as structured investigation generated from those experiences. A total of 296 seven-year-old children were interviewed in small groups of three or four and asked to respond to visual art materials. These subjects were drawn from schools in the states of Queensland, New South Wales and the Australian Capital Territory. Results indicated that two factors associated with the appraisal of art works seemed to exist: a function of making aesthetic judgements and a function of gathering and interpreting information about the art works. The study found that children utilized a three-phase process in making aesthetic judgements. The first phase seemed to be pre-figured; the second and third phase seemed to occur as a outcome of prompting. This three-phase process was designated as an Aesthetic Response Model.