This article reviews theoretical and empirical work on the relations between child and adolescent peer experiences and high school graduation. First, the different developmental models that guide research in this domain will be explained. Then, descriptions of peer experiences at the group level (peer acceptance/rejection, victimisation, and crowd affiliation) and at the dyadic level (friendship and clique membership) will be presented, together with their relation to graduation and other indicators of school adjustment. Finally, major theoretical issues and recommendations for future research will be discussed. Specifically, the necessity of including all relevant predictors and control variables in empirical studies and of dealing appropriately with time-related issues will be highlighted. Methodological challenges associated with these recommendations will be explored. (Contains 2 figures and 1 note.)