This study examined relations between early behavioral inhibition and social and school outcomes in Chinese children (N = 200). Data on behavioral inhibition were collected from a sample of 2-year-olds in China. Follow-up data on social behaviors, peer relationships, and school performance were collected from multiple sources at 7 years of age. Behavioral inhibition was found to be positively associated with later cooperative behavior, peer liking, perceived social integration, positive school attitudes, and school competence, and negatively associated with later learning problems. Highly inhibited toddlers were generally better adjusted than others in social and school areas in middle childhood. The results indicate the distinct functional meaning of behavioral inhibition in Chinese children from a developmental perspective.