The objective of this study was to identify specific temperament, parenting, and family variables, and their interactions, which predict problem behaviours and social skills in children. The subjects were 74 5-6 year old children (34 boys, 40 girls). Results showed different combinations of variables predicted each behavioural outcome, and the child's 'goodness of fit' in the home was a strong predictor of externalising behaviour and social skills. An interaction between temperamental inflexibility and punitive parenting in the development of parent-rated externalising behaviour problems was found. This study highlights the value of using specific indices of temperament, parenting and family functioning and of pursuing interaction effects in the prediction of children's behavioural development.This study investigates the relations among temperament, parenting, family functioning and goodness of fit in predicting problem behaviour and social skills in young children. The importance of identifying influential factors in the development of these behaviours is apparent from their associations with other outcomes such as peer unpopularity (Ladd, Price, & Hart, 1990) and lower school achievement (Hinshaw, 1992), and by their persistence into adulthood (Robins, 1978). Past models of both normal and abnormal development have tended to emphasise the role of either intrinsic factors or environmental influences, whereas an interactional perspective, which views development as resulting from interactions between the child and his/her environment, is increasingly accepted as a more useful conceptualisation (see Lewis, 1990, for review). This interactional approach bears resemblance to the systems perspectives advocated by a number of researchers (e.g. Minuchin, 1974; Bateson, 1972).Within the developmental psychopathology literature, the domains of child temperament, parenting style and family functioning are among those which have been examined to identify risk factors associated with maladaptive behaviour (Masten & Garmezy, 1985).