Children with Developmental Coordination Disorder (DCD) are believed to have impaired internal motor representations in the control and learning of movements. This study tested this hypothesis by assessing the automatic imitation effect, that relies on internal representation of movement, in children with and without DCD, using a comparison of the behavioural effect and the neural processes contributing to it. Reaction times and EEG event-related potentials were measured during an automatic imitation finger-tapping task in 36 children with DCD (age: M = 12.9 years; SD = 2.0) and 36 matched typically developing children (age: M = 12.9 years; SD = 1.9). Contrary to our expectations, children with DCD demonstrated significantly stronger automatic imitation effects than children without DCD. This was accompanied by altered neural processing, evidenced by a significant delay in the visual processing of body parts, as reflected in N190 latency. However, no differences were observed in motor preparation, as indexed by the readiness potential. These findings suggest that children with DCD do not exhibit reduced automatic imitation, and do not support the assumption of impaired internal representation of action in this group. Yet, deficits in control processes, such as alterations in the timing of perception, may contribute to the difficulties in DCD.