This study examines how family functioning, the parent-child relationship and personal factors are related to happiness in 1549 children aged 7 to 14 years old (53% females) in Italy. Children and pre-adolescents completed a set of questionnaires on self-rated happiness, self-concept and loneliness. At least one of their parents filled in questionnaires on family functioning, attachment and their child's happiness level. No gender differences were found in the direct measure of happiness, but younger participants were happier than older participants, according to both the children's and parents' evaluations. Happiness is influenced by positive self-concept, self-esteem and low levels of satisfaction but family functioning does not seem to play a major role. The clinical and social implications of the study are discussed.