My daughter has narrow arms but many pajamas still feel too tight for her. They're a little looser than most pajamas, but because they're tapered, they fit better around the calves and ankles. My daughter LOVES them and says they are a pajama/housewear combo. Her average height is 8.5 years and we gave her 8-9 points. There is definitely room for growth and she could probably wear them next year but they don't feel too big or baggy. If only using as underwear, consider downsizing if you want it to be more form-fitting.
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