Children’s and adults’ body representation is constrained by bottom-up multisensory information and by top-down knowledge on possible postures. Using the rubber hand illusion paradigm, this study (N = 229) investigates whether different fake hand sizes (60%, 80%, 100%, 120% or 140% of typical hand size) constrain embodiment in three age groups (6- to 7-year-olds, 12- to 13-year-olds, and adults). Embodiment was measured by questionnaire, proprioceptive drift, and affordance judgements. In line with previous work, we found robust effects of age and synchrony, with higher responses at younger ages and under conditions of visual-tactile synchrony. There were no significant effects of hand size on proprioceptive drift or self-rated hand ownership; nor did participants verbally report that their hand had changed size. Participants of all ages therefore embodied a differently-sized fake hand, without being explicitly aware of the size change. However, manual judgments of own-hand size were significantly influenced by the size of the previously seen fake hand. Therefore, participants did implicitly incorporate a size change into their body schema. In sum, embodiment of differently-sized hands reveals substantial plasticity in body representation, modulated strongly by multisensory information and age. Further, the embodiment of a differently-sized hand specifically affects action-oriented representations of the body.