This study mapped the trajectory of developing derivational morphological knowledge in Hebrew monolingual and Russian–Hebrew bilingual children. We investigated 2nd and 4th graders, using a two-by-two structure along the dimensions of modality (comprehension, production) and type of word (real-word, pseudo-word). Performance in the morphological analogies comprehension tasks improved with grade, and monolingual and bilingual children performed equally well. A different pattern was evident in production tasks. In real-word production, monolingual children were more accurate than bilingual children, but this group difference narrowed with age. In pseudo-word production, monolingual children used more morphological elements than bilingual children, and there was also a tendency towards group differences narrowing with age. Detailed error analyses across all tasks revealed that monolingual children recruited more morphological elements than bilingual children. We present implications for assessment of morphological knowledge, and suggest that morphological intervention is a promising avenue for promoting bilingual children’s success.