Rapid eye movement (REM) sleep has been shown to be related to many adaptive cognitive and behavioral functions. However, its precise functions are still elusive, particularly in developmental psychiatric disorders. The present study aims at investigating associations between polysomnographic (PSG) REM sleep measurements and neurobehavioral functions in children with common developmental psychiatric conditions compared to typically developing children (TDC). Twenty-four children with attention-deficit/hyperactivity disorder (ADHD), 21 with Tourette syndrome/tic disorder (TD), 21 with ADHD/TD comorbidity, and 22 TDC, matched for age and gender, underwent a two-night PSG, and their psychopathological scores and intelligence quotient (IQ) were assessed. Major PSG findings showed more REM sleep and shorter REM latency in the children with psychiatric disorders than in the TDC. Multiple regression analyses revealed that in groups with developmental psychopathology, REM sleep proportion correlated positively with scores of inattention and negatively with performance IQ. In contrast, in the group of TDC, REM sleep proportion correlated negatively with scores of inattention and positively with performance IQ. Whilst shorter REM latency was associated with greater inattention scores in children with psychopathology, no such an association existed in the group of TDC. Altogether, these results indicate an opposite impact of REM sleep on neurobehavioral functioning, related to presence or absence of developmental psychiatric disorders. Our findings suggest that during development, REM sleep functions may interact dissimilarly with different pathways of brain maturation.