This study examined the relative roles of parents and peers in the psychosocial adjustment of African American youth (7-15 years old) from single mother homes (N = 242). Main effects of both positive parenting and peer relationship quality were found for youth depressive symptoms. In addition, a main effect of peer relationship quality and an interaction of Positive Parenting x Peer Relationship Quality emerged for youth externalizing symptoms. When mothers engaged in higher levels of positive parenting behavior, peer relationship quality was not associated with youth externalizing symptomatology. When mothers engaged in lower levels of positive parenting behavior, however, higher peer relationship quality was associated with greater youth externalizing symptomatology. Clinical implications and future research directions are discussed.