The child walking though schoolhouse doors enters a world fi lled not only with subject matters such as science, art, and math, but also with people matters such as cherished friends and acquaintances, collaborators and competitors, their crowd and someone else ' s crowd, the sting of rejection, and quite possibly hated enemies and accursed bullies. At school, children and youth learn how to (not) get along with one another and contribute to a larger whole. They break themselves up into emotionally significant groups and cliques on the basis of gender, race and ethnicity, behavior, and common activities. Children form friendships, some fl eeting and others durable. Children develop a pecking order, not as unidimensional as the dominance hierarchies of chickens and elephants, but nonetheless an infl uential youth-driven social order with a force of its own that each child can accept or reject and that can accept or reject each child.Erik Erikson (1950Erikson ( /1963 wrote in Childhood and Society that "school seems to be a culture all by itself with its own goals and limits, its achievements and disappointments" (p. 259). In the social world of youth, fi nding a place and carving out a niche can be as important a goal as-and, to the child, a more important goal than-the next school project or geometry test. In fact, as pointed out by Nobel laureate economist George Akerlof, youths choose to engage in schooling, to be motivated to care about that geometry test, largely on the basis of their peer relationships and social identity ( Akerlof & Kranton, 2002 ). Why have adults not, in this age of education crisis and No Child Left Behind, accepted the message about the fundamental importance of school social dynamics? Few adults understand this strange society of youth, including some of the adults whose jobs are in the schools trying to socialize and teach children.The social and academic lives of children are intertwined in a common if complex peer context. Children who are rejected by their peers are in danger of having poor academic and behavioral outcomes ( Bierman, 2004 ;Ladd, 2005 ). Classrooms that are out of control, that are marked by resistance to the teacher ( McFarland, 2001 ) or by an aggressive, antiacademic culture, are unforgiving terrain for young people ' s life of the mind. Negative classroom peer dynamics can be strong enough to undermine the best efforts of adult socializers. As we indicate in our review, one of the great, emerging areas in the study of peer relationships is the extent of interconnection between academic and social outcomes. At the same time, one of the least understood areas concerns the role of adults, such as teachers, in effectively guiding peer relationships toward the essential ends of learning and character.Our goal is to embed current scholarship on children ' s peer relations within an educational context, attuned to the activities and norms of classrooms and schools as fundamental social settings ( Tseng & The preparation of this chapter was supported by grants from the ...