We examined the extent to which cognate facilitation effects occurred in simultaneous bilingual children’s production and comprehension and how these were modulated by language dominance and language context. Bilingual Dutch-German children, ranging from Dutch-dominant to German-dominant, performed picture naming and auditory lexical decision tasks in single-language and dual-language contexts. Language context was manipulated with respect to the language of communication (with the experimenter and in instructional videos) and by means of proficiency tasks. Cognate facilitation effects emerged in both production and comprehension and interacted with both dominance and context. In a single-language context, stronger cognate facilitation effects were found for picture naming in children’s less dominant language, in line with previous studies on individual differences in lexical activation. In the dual-language context, this pattern was reversed, suggesting inhibition of the dominant language at the decision level. Similar effects were observed in lexical decision. These findings provide evidence for an integrated bilingual lexicon in simultaneous bilingual children and shed more light on the complex interplay between lexicon-internal and lexicon-external factors modulating the extent of lexical cross-linguistic influence more generally.