This study examined the process of adjustment in shy and nonshy children during the transition to school in a Chinese community. Children (35 shy and 19 nonshy) were assessed three times before and after they entered the first grade. Shy and nonshy children's interactions with peers and teachers, perceived peer acceptance, and anxious behaviour were measured using multiple methods, including naturalistic observations, self-report, and teacher report. Results indicated that shy and nonshy children showed consistently different behavioural profiles in free play settings and structured classes during the transition. However, teacher ratings of and peer responses to shy and nonshy children were not consistently different. Results are discussed in relation to the cultural context where the study was conducted.