This article reviews and synthesizes the literature on family variables and interaction processes associated with child and adolescent depression. The review focuses on two principal streams of literature: families of depressed children and children of depressed parents. In regard to the families of depressed children, specific attention is paid to familial psychopathology, demographic factors, negative life events, and family environment. The section on children of depressed parents addresses genetic contributions, maternal and paternal depression, and children's resilience in the face of parental depression. This is followed by a brief review of the literature on the influence of sibling relationships in the manifestation of childhood depression. The article concludes with a discussion of the interaction between family environment and childhood depression.