The validity of a developmentally based life-stress model of depression was evaluated in 88clinic-referred youngsters. The model focused on (a) the role of child–environmenttransactions, (b) the specificity of stress–psychopathology relations, and (c) theconsideration of both episodic and chronic stress. Semistructured diagnostic and life-stressinterviews were administered to youngsters and their parents. As predicted, in the total samplechild depression was associated with interpersonal episodic and chronic stress,whereas externalizing disorder was associated with noninterpersonal episodic andchronic stress. However, the pattern of results differed somewhat in boys and girls. Youngsterswith comorbid depression and externalizing disorder tended to experience the highest stresslevels. Support was obtained for a stress-generation model of depression, wherein childrenprecipitate stressful events and circumstances. In fact, stress that was in part dependent onchildren's contribution distinguished best among diagnostic groups, whereas independentstress had little discriminative power. Results suggest that life-stress research may benefit fromthe application of transactional models of developmental psychopathology, which consider howchildren participate in the construction of stressful environments.