Research on exclusionary discipline often focuses on school-aged children (kindergarten to twelfth grade), overlooking carceral logics in early childhood education (ECE). This paper advances a conceptual understanding and policy-oriented analysis that situates exclusion in preschool, child care, and other ECE settings as systemic rather than individual, showing how surveillance, sorting, and regulation disproportionality affect young children. We demonstrate how diagnostic gatekeeping, inequitable access, and formal and informal removals are design choices embedded in systems that reproduce racialized and classed hierarchies. At the same time, ECE holds transformative potential. We highlight abolitionist and decolonizing approaches already in practice, including culturally sustaining and community-rooted models, healing-centered and trauma-responsive care, and reimagining classrooms as “homeplace” spaces of resistance and care. We conclude with recommendations for policy, research, and practice that reject surveillance and exclusion, expand access, and center family and community leadership. If exclusion begins before the pipeline, so must liberation.