The extreme parenting experiences encountered by children who are physically abused or neglected place them at increased risk for impaired socio-emotional development. There is growing evidence that maltreated children may apprehend interpersonal encounters in different ways from children without such traumatic histories. This systematic review examines the links between childhood physical abuse and neglect and various constituent skills of social understanding (including emotion recognition and understanding, perspective taking, false belief understanding, and attributional biases) in 51 empirical studies. The review incorporates a meta-analysis of 19 studies on emotion recognition and understanding in this population. This showed an overall negative effect of maltreatment, but moderation analyses revealed that significantly stronger effects were found for measures of emotion understanding rather than recognition, and for younger rather than older age groups. The broader review also reveals a complex and differentiated profile of social understanding among maltreated children. Directions for future research that addresses individual differences in children's experiences, both within and outside the maltreatment context, are discussed. (Contains 4 tables.)