Children's stress physiology can shed light on which children are more or less susceptible to contextual experiences (Obradović, 2016). Over the last decade, researchers have identified concentrations of the stress hormone cortisol in the hair shaft as a promising biomarker indexing the long-term, chronic impact of adversity on functioning of the hypothalamic-pituitary-adrenal (HPA) axis (Bates, Salsberry, & Ford, 2017). However, links between hair cortisol concentrations (HCCs), adversity, and young children's development have only been tested in a few studies of children from high-income countries. The goal of the present study was to examine whether HCCs were related to cognitive development in preschoolers from rural Pakistan, a lower middle-income country. Furthermore, we examined whether HCCs served as a marker of biological sensitivity to children's family contexts by moderating the effects of family socioeconomic resources at birth on preschoolers' verbal intelligence, pre-academic skills, and executive functions (EFs).