Discusses the benefit of a developmental perspective in understanding the psychological and psychosocial impact of immigration on children. Migration and acculturation require children to deal with stress, but whether they are adversely affected by these experiences depends on factors such as temperament, age, sense of security, and coping strategies. Whether children accumulate more positive or negative outcomes from the experience of immigration also depends in part on the political, economic, and educational circumstances of their country of origin and the place of resettlement. Despite emotional difficulties and other barriers, many refugee children make a successful adjustment to their new community. Moreover, while acculturation requires immigrant children to navigate both the culture of their parents and of the mainstream and can result in numerous conflicts, the process also can impart valuable skills such as flexibility and adaptability. Further study is required to: (1) understand the factors influencing the immigrant child’s sense of self and identity; (2) document the impact that bilingualism and biculturalism has on cognitive development; and (3) probe the ways immigrant children and adolescents cope with discrimination, racism, and prejudice as well as the factors that influence their reactions to the dominant society.