Research has shown that observing iconic gestures helps typically developing children (TD) and children with specific language impairment (SLI) learn new words. So far, studies mostly compared word learning with and without gestures. The present study investigated word learning under two gesture conditions in children with and without language impairment. Twenty children with SLI (age four), twenty age-matched TD children, and twenty language-matched TD children were taught words that were presented with either iconic or non-iconic gestures. Results showed that children of all groups benefited more successfully from observing iconic gestures for word learning. The iconic gesture advantage was similar across groups. Thus, observing iconic gestures prompts richer encoding and makes word learning more efficient in TD and language impaired children.