My 6 year old daughter is a big fan of Studio Ghibli's films for younger kids, and recognized the art from the commercials. I'd say this film leans more towards "Panda! Go Panda!" than "Kiki's Delivery Service". There's tension, but not enough to make little ones uncomfortable. The plot isn't heavy, and the only issue I saw was the ambiguity of Ponyo's father. He still seemed scary to a few of the kids I was in the theater with. We'll probably go again; my daughter has been begging all week.