The purpose of this study was to investigate the relation between social status and discourse skills in preschool children. Using peer nominations, 48 acquainted preschool children were classified as liked, disliked, or low impact. Children were videotaped in freeplay interactions in which one child entered the play of a pair of same-sex peers. Social status differences were found primarily in skills contributing to coherent discourse. Specifically, liked children were more inclined to direct their initiations clearly, to speak to both interaction partners rather than just one, to respond contingently to others, to acknowledge others, and to reinitiate when rejecting. Liked children were also better able to adapt to the differing social demands of entry versus nonentry contexts in that they were more likely to give information and less likely to express their feelings when entering a group. Deficits in communication skill were greater for disliked children than for low-impact children. Results indicate that communication skills that contribute to coherent discourse are fundamental to social interaction and may influence young children's peer acceptance.