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This study examined the influence of object labels and shape similarity on 16- to 21-month-old infants’ inductive inferences. In three experiments, a total of 144 infants were presented with novel target objects with or without a nonobvious property, followed by test objects that varied in shape similarity to the target. When objects were not labeled, infants generalized the nonobvious property to test objects that were highly similar in shape (Experiment 1). When objects were labeled with novel nouns, infants relied both on shape similarity and shared labels to generalize properties (Experiment 2). Finally, when objects were labeled with familiar nouns, infants generalized the properties to those objects that shared the same label, regardless of shape similarity (Experiment 3). The results of these experiments delineate the role of perceptual similarity and conceptual information in guiding infants’ inductive inferences.