In a follow-up study of 49 children and adolescents with anxious or depressive disorders up to 50% had not recovered. In the 12 months preceding onset there were no social factors which predicted recovery at follow-up. Between onset and follow-up the children were less likely to be exposed to undesirable life events, and significant improvements in maternal confiding relationships were reported. Neither of these improvements predicted the level of recovery at follow-up. Poor recovery is best predicted by moderate to poor friendships after the onset of disorder, particularly for those with a diagnosis of depression. Further confirmation is provided that direct interviewing of children by trained personnel using semistructured schedules is a valid method for determining mental symptoms and perception of recent friendships.