This study aims to identify the family characteristics that promote the development of social skills in children with physical disabilities. Parents and teachers completed a range of questionnaires in an Australia-wide study of 212 parents of children (5-12 years of age) with physical disabilities who attend mainstream schools. The relationships between parental attitudes, parental involvement, family relationships, teachers' opinions, disability severity, and children's social skills were tested using structural equation modelling. The results of this study show the importance of family characteristics for the development of social skills in children with physical disabilities. A strong link was found between aspects of healthy family relationships, especially high levels of parental involvement with schooling, and greater social skills development in children. In short, families with highly cohesive, idealised, and democratic family styles strongly influence children's social skills by providing a safe and sound foundation for children to explore their social environment. Practical implications arising from this study are discussed. (Contains 2 figures.)