In general, dressing up in various clothing is typical of children this age. What I'd suggest is arranging the opportunity for him to do so without doing it in a surreptitious way. You can have a variety of old clothes among his playthings and, if he attends a pre-school program, see if they have such props available. Handle it in a casual, off-hand manner. Also, when you gather the clothing,
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First, when my son was young, because I was a single mother, he wanted to do what I did. He had his own 'powder' and a makeup brush and chapstick/lipgloss because he saw me get ready everyday and wanted to do it to. He was 3. Around the same age he'd also occassionally try on my bras over his clothes and check himself in the mirror.
Second, his daycare has a variety of dress-up clothes and accessories in one of their play areas. I can't tell you the number of times I've come in and seen any of the boys decked out in the sequined gown and tiara, or bride outfit, whatever, while they play (the boys are still the 'daddy' and the girls are the 'mommy' though. lol)
Anyway, the point is, now that my son's older, he doesn't do it at all. He's otherwise always been a typical boy, cars, trucks, digimon, hockey and rough and tumble with the other boys.
Unless your son is really demonstrating or insists on identifying himself in a female role (as opposed to just checking out the clothes and accessories), I wouldn't worry about it. Over time, if he focuses on the identification with female roles for himself, then be sensitive not to be harsh or judgemental which can be very hard for his sense of security and self.
But what you've described really just sounds like every other boy in my area. Having fun and trying on the clothes he sees so much. (remember, right now you are probably the person he sees most. As he gets older, he'll play more with friends and be exposed to other ideas to explore)
and he is just doing what everyone else does,of course boys play dress-up. It's nice to hear a comment from another mom who experienced it.Thanks!