The present study seeks to investigate how 7, 9 and 12-year-old Greek-speaking children differ in their ability to encode the temporally ordered events of a story as constituents of narrative structure. The research was conducted on the basis of a written, picture-elicited narrative. The results show that 7 and 9-year-olds show a tendency not to mark the causal relations between events, but to produce linear narratives with local temporal discourse organization. 12-year-olds begin more systematically to encode causal relations between events and episodes of the story. The ability, however, to produce complete episodes which are hierarchically organized appears as fully developed only in adult narratives. These results indicate that global-level mastery of narrative discourse organization still develops after the age of 12.