Bullying is the most common form of interpersonal violence facing youth in schools, and recent school-based intervention efforts have shown only limited success in reducing such behavior. Accordingly, this article considers the utility of Albert Bandura's theory of moral disengagement in understanding bullying behavior among children and youth. Originally developed to explain how adults are able to engage in extreme forms of aggression without apparent self-condemnation, we review research examining the links between moral disengagement and peer bullying and aggression in children and adolescents, documenting significant associations between the ability to disengage from moral self-sanctions and aggressive behavior (including bullying). Given these links, we consider the implications of these findings for educational practice.