A Norwegian sample of 401 mothers was used to investigate the effects of child factors and family risk and supportive factors on both child competencies and behaviour problems at 8 years. The contribution of the various predictors on the differentiation of children into groups of resilient vs. vulnerable across four different time periods was also examined within a prospective longitudinal study design. The study showed that a substantial proportion of the variance in both behaviour problems and social competence at 8 years could be explained by risk and supportive factors in child and family already present at 18 months. Within-child and within environment predictors had selective impact on each outcome domain in addition to common effects. Depending on time of assessment, 73-89% of the children from stressed families could be correctly classified as resilient. Pathways to ‘resilience’ and ‘positive adjustment’ are apparent from early in life, with social support factors and temperament characteristics being of continuing importance. The study confirms the importance of attending to early emerging child functioning and corresponding family conditions, and hence the need for prevention and early intervention efforts.