One hundred 4 to 6 year old Australian children (55 male and 45 female) were assessed for peer acceptance and rejection, and social-cognitive interpersonal problem-solving. Class teachers rated social behaviour of children within educational context. Peer acceptance was found to be positively correlated with teacher rated successful peer group entry, popularity among classmates, outgoing social behaviour; and negatively with conflict initiation. Peer accepted children were more likely to use positive and less likely to use negative strategies to resolve conflicts with peers. Whereas opposite was true for less accepted children. Results of this study clearly predict relationship between peer acceptance and rejection, and social-cognitive interpersonal problem-solving. Peer accepted children suggested more number of relevant and alternative strategies than their less accepted counter parts. Author’s Address: Shanti Balda, Department of Human Development and Family Studies, College of Home Science, C.C.S Haryana Agricultural University, Hisar, 125004, Haryana, India REFERENCES Asher, S. R. and Renshaw, P.: Children without friends: Social knowledge and social skills. In: S. R. Asher and J. M. Gottman (Eds.): The Development of Children’s Friendships. Cambridge University Press, New York (1981). Asher, S. R., Singleton, L. C., Tinsley, B. R. and Hymel, S.: A reliable sociometric measure for preschool children. Developmental Psychology, 15: 443-444 (1979). Chen, X. and Rubin, K. H.: Correlates of peer acceptance in a Chinese sample of six years olds. International Journal of Behavioral Development, 15(2): 259- 273 (1992). Coie, J. D., Dodge, K. A. and Coppotelli, H.: Dimensions and types of social status: A cross-age perspective. Developmental Psychology, 18(4): 557-570 (1982). Kemple, K. M.: Preschool children’s peer acceptance and social interaction. Young Children, 46(7): 47- 54 (1991). Parker, J. G. and Asher, S. R.: Peer relations and later personal adjustment: Are low-accepted children at risk? Psychological Bulletin, 102: 357-389 (1987). Rubin, K. H.: Social Problem Solving Test. Unpublished manuscript, University of Waterloo, Department of Psychology, Ontario, Canada (1988). Rubin, K. H. and Daniels-Beirness, T.: Concurrent and predictive correlates of sociometric status in kindergarten and Grade 1 children. Merrill Palmer Quarterly, 29(3): 337-351 (1983). Spivack, G. and Shure, M. B.: Social Adjustment of Young Children: A Cognitive Approach to Solving Real Life Problems. Jossey-Bass, San Francisco (1974). Wasik, B. H.: Sociometric measures and peer descriptions of kindergarten children: A study of reliability and validity. Journal of Clinical Child Psychology, 16: 218-224 (1987).