This study examined (a) the predictive link between peer victimization and children's reactive and proactive aggression, and (b) the potential moderating effect of reciprocal friends' reactive and proactive aggression in this context. The study also examined whether these potential moderating effects of friends' characteristics were stronger with respect to more recent friends compared to previous friends. Based on a convenience sample of 658 twin children (326 boys and 332 girls) assessed in kindergarten and first grade, the results showed that peer victimization uniquely predicted an increase in children's teacher-rated reactive aggression, but not teacher-rated proactive aggression. The relation of peer victimization to increased reactive aggression was, however, moderated by recent--not previous--reciprocal friends' similarly aggressive characteristics. These findings, however, tended to be mostly true for boys, but not for girls. The findings are discussed in terms of their theoretical and practical implications for victimized children's risk of displaying reactive and proactive aggressive behaviors.