The current study examined social cognitive skills in children with nonverbal learning disabilities (NLD) compared to normally achieving (NA) children. The relation between social cognitive skills and psychosocial adjustment was also investigated. There were no group differences on children's ability to represent orally presented social vignettes. Children with NLD were less able to recognize self-generated competent/assertive responses as the best solutions to a problem, expected fewer positive and more negative outcomes for examiner-provided competent responses, and showed a trend toward more frequently judging a story character as being mean. A social problem solving factor predicted unique variance in psychosocial adjustment beyond variance accounted for by nonverbal intelligence and nonverbal social cue interpretation. Results are discussed within a framework for which social cognitive deficits more broadly defined than encoding and interpreting nonverbal social cues contribute to the psychosocial adjustment problems of children with NLD. (Contains 5 tables and 9 notes.)