Social institutions such as family and schools have a leading role in gender role socialization of boys and girls. Observation of role plays of children was undertaken to analyse the patterns of gender identities and extent of role differentiation among primary school children. The sample consisted of boys and girls in the third standards of six primary schools each in Malappuram and Thrissur districts of Kerala State. Role plays were done by 12 boys’ groups and 12 girls’ groups, each with 4 to 6 members. An inventoryon gender attributes was also used to collect data regarding the extent of gender identity formation among 120 girls and 120 boys. The results of the study reveal that girls and boys show behavioral patterns appropriate for the concerned gender with regard to responsibilities; styles of communication and adherence to the gender hierarchy implying the formulation of gender identities in the early childhood itself. Both boys and girls were ready to take up the roles appropriate for their gender and while the boys showed reluctance to take up opposite gender roles, girls expressed more interest and happiness to do the roles of boys and men. The role of family rather than the school in developing gendered identities and role differentiation in primary school children is highlighted by the findings of the study.