Recent interest in children's social competence has been prompted by findings of correlational and retrospective studies that indicate a positive relationship between early social adjustment problems of children and their adjustment later in life. To date, the assessment methodology in the area has pursued two directions: (1) sociometric measures (peer nomination and peer rating scales), which have provided the major means of identifying the socially competent child, and (2) direct observation, principally employed in the specification of socially competent behaviors. The current uses and the inherent assets and limitations of both strategies are discussed along with suggestions for enhancing current data collection methods. Issues concerning the definition of social competence, generalizability of current findings, and social norms are also examined.