Purpose: This study examined normative change in children's levels of social competence and parent-child interactions (PCIs) from kindergarten through second grade as well as relations between levels of PCI and children's social development. Methods: Multiple waves of data were collected from parents and teachers of 379 children ranging in age from 4 to 6.5 years. Hierarchical linear modeling was used to estimate change over time in social competence controlling for children's exposure to early learning programs such as home visiting and preschool programs. Next, frequency of PCI was entered as a time-varying predictor of children's social competence levels. Results: Results indicated discrepancies between parent and teacher reports of children's social development. Parents reported normative growth in children's social competence, whereas teachers reported declines in this area. Parents also reported decreases in PCIs over time. Parent-reported social competence scores were positively associated with levels of PCIs, whereas no significant association was found between teacher-rated social competence scores and levels of PCI. Discussion: These results highlight the importance of viewing children's social competence as a dynamic variable related to a multitude of individual, familial, and social factors. Findings also emphasize PCIs as a potential target for interventions aimed at enhancing such competence.