Objective <p>This study aimed to test and compare the validity, reliability and responsiveness of the Experimental EuroQol Toddler and Infant Populations version 2.0 (EQ-TIPS) and the Paediatric Quality of Life Inventory™ version 4.0 (PedsQL) in young Australian children.</p> Methods <p>Data for children aged 2–3 years were available from the Australian Paediatric Multi-Instrument Comparison (P-MIC) study. EQ-TIPS and PedsQL were administered in randomised order to caregivers of children aged 2–3 years. We assessed acceptability, feasibility, response distribution, ceiling effects, known-group validity, convergent validity, test-retest reliability and responsiveness in the total sample and by child age. EQ-TIPS level sum scores and PedsQL total scores were used as outcomes.</p> Results <p>A total of 510 caregivers of children completed the initial survey and 286 completed a follow-up survey at four weeks. The EQ-TIPS had ceiling effects in children with special health care needs (25.8%). EQ-TIPS showed stronger effect sizes in differentiating children with health conditions whereas PedsQL showed statistical significance and a minimal clinically important difference in detecting proxy-reported improvements in health. We found moderate to strong correlations in all anticipated EQ-TIPS and PedsQL item pairs. The two instruments showed comparable performance in children age 2 and age 3.</p> Conclusion <p>Both EQ-TIPS and PedsQL are valid instruments, with small differences in psychometric performance depending on user needs and context. EQ-TIPS was easier to complete and had better known-group validity and test-retest reliability, whereas PedsQL was more sensitive in detecting health improvements. Further research on the responsiveness of EQ-TIPS is needed.</p>