Children grow up in families with cultural backgrounds and beliefs, and in families with varying financial resources and social capital. They reside in communities and neighborhoods that are homogeneous or diverse, with varying levels of resources and risks. The primary purpose of this chapter is to draw attention to and integrate knowledge on contextual factors for a more holistic understanding of normative development. This chapter synthesizes extant studies that have examined ways in which race/ethnicity, socioeconomic status, geographic residence, immigration status, and family formation status (e.g., transracial adoption) are associated with both normative (e.g., social emotional well‐being, academic aspiration, prosocial friendships) and nonnormative (e.g., externalizing behaviors, high‐risk behaviors, school dropout,) child development; identifies methodological and theoretical strengths and weaknesses of extant studies; and provides recommendations to advance future studies of child development in diverse contexts.