We were given this book as a gift when my son was an infant and I read it to him for the first time recently. He's 4 and very literal. He didn't understand what was going on, was a bit spooked by the scary bits, and actually wanted to stop reading it. I really enjoy the book myself so I'll try it again when he's a bit older.
its more of a book for teenagers my age, im almost 18, and i found when i reread the book after about 6 or so years i connected to it a lot better. (i had to write an essay on 2 books from my childhood and i chose this book) its better for 16 year old's and up because its about leaving and going out in the world on your own.....but that's just my personal opinion.