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Research on the predictivity of activity settings, preschool teachers’ activities, and children’s activities for interaction quality is inconsistent and cannot be transferred easily to specific national preschool contexts. The present study addresses this issue by assessing the interaction quality of 185 children aged 3–5 years attending 61 preschools in Austria using the Individualized Classroom Assessment Scoring System (inCLASS). Activity settings and activities were captured using a time-sampling method. Having included control variables, regression analyses revealed that scaffolding was positively related to children’s interactions with teachers, free choice was positively related to interactions with peers, and ‘high-yield’ activities were positively related to interactions with peers and task orientation. Teacher-led activities and scaffolding were negatively related to interactions with peers, and ‘low-yield’ activities were negatively related to interactions with peers and task orientation. Effect sizes ranged from small to medium. The findings indicate that opportunities to support children remain untapped.