The objective of this study is to explore an effect of discussion activity over conflict situation utilizing picture books on peer competence of child. Based on the above objective, following research problem has been established. 1. What is an effect of discussion activity over conflict situation utilizing picture books on peer competence of child? 1-1. What is an effect of conflict situation utilizing picture books on taking the lead in play of child? 1-2. What is an effect of discussion activity of conflict situation utilizing picture books on making friends of child? 1-3. What is an effect of discussion activity of conflict situation utilizing picture books on sharing of child? 1-4. What is an effect of discussion activity of conflict situation utilizing picture books on resolving conflict of child? This survey was performed based on total 52 children including experiment group (26 persons) and control group (26 persons) aged full 5 years old of S annexed kindergarten near to J annexed kindergarten located at Yongin City, Gyeonggi-do. Average age of test subjects was 62 months (female: 64 months, male: 63 months) based on commencement date of research and that of experiment group was 62 months (female: 64 months, male: 62 months) and control group 63.5 months (female: 한국유아교육연구 제17권 제2호 - 28 - 64 months, male: 63 months). Test was performed during the period from April 21 (Mon), 2014 to July 4 (Fri), 2014 and total 10 times of discussion activity over conflict situation utilizing picture books was performed for 10 weeks based on 1 time a week. As research tool, peer competency test tool designed by Park, Jeong Ran (2008) was used. The result of this research could be summarized as follows. First, it was revealed that in peer competency of child, there was a significant difference between experiment group that performed discussion activity over conflict situation utilizing picture books and control group that did not perform such activity. This implies that such activity exerted a positive influence over peer competency of child. Second, in case of taking the lead in play that is subelement of peer competency, it was revealed that there was a significant difference between experiment group that performed discussion activity over conflict situation utilizing picture books and control group that did not perform such activity. This implies that such activity exerted a positive influence over taking the lead in play of child. Third, in case of making friends that is subelement of peer competency, it was revealed that there was a significant difference between experiment group that performed discussion activity over conflict situation utilizing picture books and control group that did not perform such activity. This implies that such activity exerted a positive influence over making friends of child. Fourth, in case of sharing that is subelement of peer competency, it was revealed that there was a significant difference between experiment group that performed discussion activity over conflict situation utilizing picture books and control group that did not perform such activity. This implies that such activity exerted a positive influence over sharing of child. Fifth, in case of resolving conflict that is subelement of peer competency, it was revealed that there was a significant difference between experiment group that performed discussion activity over conflict situation utilizing picture books and control group that did not perform such activity. This implies that such activity exerted a positive influence over resolving conflict of child.