Neutralize the situation and make sure the environment is safe. This is done by putting yourself between the children if they need to be separated, or holding onto an object that the children are arguing over. The most important part of this step is making sure that the situation is not dangerous for any children in the classroom.
Tell the children that you are going to help them solve their problem and ask each child involved what the problem is.
Repeat the child's words to the other child involved. For example, if John tells you that Tom took the fire truck away from him, you would say "John says that he was playing with this fire truck and you took it away from him." Allow the second child to respond and repeat the child's words to the first child.
Ask the children what they think they can do to resolve their problem. Each time a child gives a suggestion, repeat her words to the other child and see if they can agree on a solution. Keep taking suggestions until both children agree on the solution.
Give your own suggestion as to how the conflict can be resolved. Do this step only if the children are having a hard time resolving their conflict. If the students do not like your suggestion, give them another one.