Classroom social integration with peers is vital to students' school success, and all students can benefit from contact with peers who are different in various ways. Teachers are uniquely positioned to support the social adaptation of diverse learners but require an understanding of classroom dynamics. Moreover, teachers need strategies that help to leverage positive peer dynamics and that promote an engaged classroom climate for all students. Reflecting a person-in-context perspective, this review discusses the peer relations and social adjustment of students, particularly in classrooms with a diverse range of student characteristics and instructional needs, and proposes that teachers' use of social dynamics management strategies can foster classroom communities that support the involvement and adjustment of all students.