The current study examined whether youth's perceived bullying norms play a role in friendship dynamics related to bullying and victimization among the fifth and sixth grade (N = 736, 52% girls at Wave 1, N = 677, 52% girls at Wave 2) in elementary schools. Youth completed peer nominations (friendship, bullying, and victimization) and a self-reported measure of perceived bullying norms in the classroom. With longitudinal social network analysis (RSiena), this study investigated selection and influence of friends in bullying and victimization as well as the moderating role of perceived bullying norms in these processes. Results indicated that high bullying youth received many friendship nominations and tended to be more influenced by high bullying friends. In addition, highly victimized youth tended to form friendships with highly victimized peers, and youth whose friends are highly victimized became highly victimized themselves over time. As hypothesized, youth's perceived bullying norms moderated these processes. As youth perceived higher bullying norms, the greater was the tendency for high bullying youth to select high bullying peers as friends and to be influenced by high bullying friends. Likewise, friend influence on victimization was magnified when youth perceived high bullying norms. The current study underscores the importance of youth's perceived bullying norms in friendship dynamics of bullying and victimization.