This article provides a comprehensive review of studies conducted over the past decade on the effects of neighborhood and poverty on adolescent normative and nonnormative development. Our review includes a summary of studies examining the associations between neighborhood poverty and adolescent identity development followed by a review of studies addressing both direct and indirect linking among neighborhood poverty to academic achievement as well as internalizing and externalizing behaviors. Available neighborhood studies that examined physical health disparities, as well as genetic and environmental influences on adolescent development, were also included. Within each section we summarize findings that address the direct and indirect effects of neighborhood poverty. We conclude with promising strategies for future research, including recommendations for addressing theoretical and methodological issues that continue to plague this field of research.