OBJECTIVE To evaluate the effect of third molar impaction and impaction-related parameters on third molar development. METHODS Panoramic radiographs (N=3972) from 473 males and 558 females between 3.2 and 23.5 years old were analysed. Three parameters of impaction were examined: hindering contact between third and adjacent second molar, retromolar space availability (only in lower third molars), and angulation between the third and adjacent second molar. From the separate parameters, a definition for impaction was derived. Third molars' development was staged according to a modified Köhler et al. staging technique. A linear model was used to compare within-stage and overall age, as a function of hindering contact, retromolar space, and impaction. Furthermore, a quadratic function was used to study the correlation between age and angulation. RESULTS Significant differences were found in mean age as a function of hindering contact and retromolar space, depending on third molar location and stage. There was a significant relation between angulation and age, depending on the stage, with all third molars evolving to a more upright position (closer to 0°). Mean ages of subjects with impacted third molars were significantly lower in certain third molar stages, but the differences were clinically small (absolute differences ≤0.65 years). Moreover, after correction for stage differences, no significant differences in age could be demonstrated. CONCLUSIONS The development of impacted and non-impacted third molars can be considered clinically equal in our study population. CONCLUSIONS There is no distinction required between impacted and non-impacted third molars for dental age estimation.