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The chapter begins with a distinction made between the interactions children have with peers, the relationships they form with peers, and the groups and networks within which peer interactions and relationships occur. From this conceptual overview, a review of relevant theories is presented. Thereafter, a developmental perspective of peer interactions, relationships, and groups is presented covering the periods of infancy, toddlerhood, early childhood, middle childhood, and adolescence. Subsequently, methods and measures pertaining to the study of children's peer experiences are described. Next, we examine factors that may account for peer acceptance and rejection as well as qualitatively rich and poor friendships. Among the factors discussed are included temperament (biological factors), sex of child, parenting, parent-child relationships, and culture. The chapter concludes with a discussion of the extent to which individual differences in peer acceptance, rejection and friendship (prevalence and quality) predict adaptive and maladaptive developmental outcomes and a suggested agenda for future research.