A differential research design was employed to compare the behaviour of peer accepted and peer rejected childrenof Dharwad and Wokha regions. Children in the age group of eight to twelve years studying in class 3, 4, 5 and 6 fromDharwad and Wokha constituted the population of the study. A sample of five each peer accepted and rejected from eachclass with a total of 156 children from Dharwad and 158 from Wokha were drawn out through sociometry from twogovernment and two private schools in both the regions. Teacher’s Report Form (TRF) by Achenbach (2001) was used toassess behaviour problems of the children. The results revealed a significant association between internalizing, externalizingand total behaviour problems by sociometric status in Dharwad region and an association of total behaviour problem bysociometric status in Wokha region. Results also revealed that rejected children had more behaviour problems than the peeraccepted for both the regions. This implies that peer relationships have a great influence on the behaviour of children at anearly age and serves as a protective factor for desirable behaviour. It is thus a necessity to provide an intervention forparents and teachers to monitor social relations of children with peers and protect them from risks of isolation and rejection.