This study compared the social adjustment of abused and nonabused children, ages 4 to 11 years, and examined whether sociometric status and friendship quality differentially predict children's loneliness and teacher ratings of peer behavior. Thirty-five abused children from a structured residential treatment center and 43 nonabused children from the elementary school in which the abused children were enrolled were compared on sociometric status, loneliness as measured by the Child Loneliness Scale, teacher ratings of social behaviors, and observational and self-report measures of friendship quality (Friendship Observation Scale and Friendship Quality Questionnaire, respectively). Children with friends, based on reciprocal nominations during sociometric assessments, were assessed on friendship quality during free play and games playing, and were given the Friendship Quality Questionnaire. The Peabody Picture Vocabulary Test-Revised (PPVT-R) was given to all children. Results indicated that abused children and children without friends scored lower than nonabused and children with friends on the PPVT-R, respectively. Abused children were not rated lower sociometrically than nonabused children. Abused children did not differ from nonabused on several measures of friendship quality, resolving conflicts and helping each other. However, abused children were observed to be more negative and less proactive in interactions. Abused children rated their friendships as being more prone to conflict, higher on betrayal, and lower on caring. Friendless abused children scored highest on loneliness; nonabused children with friends scored lowest. Several friendship variables accounted for significant variance in teacher ratings and loneliness, beyond that accounted for by sociometric status. Contains 13 references. (KDFB)