Research on the development of social competence in children is reviewed in this ERIC digest. The focus is on the social development of infants and toddlers which takes place in the family, in peer groups, and in preschool. The importance of infant bonding with at least one particular adult, socialization of the developming child within the family context, and the contribution of peer relationships to social development are discussed. Also considered are factors which limit children's social development, peer relationships in elementary school and the long-term benefits of positive peer interactions, and societal factors which influence children's social development. (RH)