Little is known about individual differences in how children respond to peer aggression. This research explored the contribution of social goal orientation, specifically development goals (improving social skills and relationships), demonstration-approach goals (gaining positive judgments), and demonstration-avoidance goals (minimizing negative judgments). Children (M age = 7.97, SD = .34) were followed from 2(nd) to 3(rd) grade. Validity of the social goal orientation construct was established through correlations with situation-specific goals and social adjustment. Development goals predicted adaptive responses (more effortful engagement, problem solving, advice seeking; fewer involuntary responses); demonstration goals predicted maladaptive responses (less effortful engagement, problem solving; more disengagement, retaliation). This study contributes to theoretical understanding of the process of peer aggression and interventions to promote optimal social health.