This paper considers the role of emotion regulation (i.e., extrinsic and intrinsic monitoring and adjusting of emotion) and emotion understanding (i.e., comprehension of the signs of, causes of, and ways to regulate emotion) in childhood adjustment. Developmental and clinical research focused on emotion regulation and emotion understanding are reviewed with an emphasis on studies including psychopathological samples. The implications of emotion research for the study of child psychopathology and child therapy are examined.