Used simulation to compare structural equation modeling methods for estimating and testing hypotheses about an interaction between continuous variables. Findings indicate that the two-stage least squares procedure exhibited more bias and lower power than the other methods. The Jaccard-Wan procedure (J. Jaccard and C. Wan, 1995) and maximum likelihood estimates of the revised Joreskog-Yang procedure (K. Joreskog and F. Yang, 1996) were most effective. (SLD)