This paper critically reviews the literature on the links between temperament and social development in children and adolescents. Social development is broadly defined to include externalizing and internalizing behaviour problems, prosocial behaviour and social competence. It concludes that there are clear links between specific dimensions of temperament and particular aspects of social development. Examples include the association of negative reactivity with externalizing behaviour problems, inhibition with internalizing behaviour problems, and attention regulation with school functioning. Theoretical and methodological issues to be confronted in future research are identified, including the need to investigate further the interactions between temperament and social context. Analysis of patterns of change in temperament, in relation to physiological changes and to such factors as parenting and socio-cultural expectations of children, promise to refine our understanding of how temperament works in context. Some practical implications which can be drawn from the research are also discussed.