This paper reviews previous literature about peer acceptance and friendship, two of the most critical aspects of peer relations that have received most of research attention during the past years. In this review, we will focus on the processes explaining the way children use the ability to socialise with peers; explore the hypothesis that certain aspects may interact with peer acceptance and friendship, that is, behavioural, psychological, and physical; and finally, indicate on which terms peer acceptance and friendship are interconnected. Those data may constitute a concrete base upon which peer acceptance and friendship need to be investigated separately when measuring peer competence. Pedagogical implications will also be highlighted as a guidance for parents, teachers, and others who work with young children to design effective prosocial activities.