Physically abused youth are often described as more aggressive and noncompliant in comparison with normal children, despite inconclusive findings regarding the nature of behavior problems among these youth. The present study investigated whether empathy would be differentially related to aggression and behavior compliance of abused youth within the natural living context of a group home environment. As predicted, results suggest a strong, positive relationship between empathy and lower rates of interpersonal aggression and a strong positive relationship between empathy and higher rates of behavior compliance. In contrast to previous studies which support the intergenerational cycle theory of abuse, the results of this study do not support the belief that abuse results in stabilized aggression and suggests that the empathetic abused child is less likely to be aggressive and noncompliant than his/her non-empathic counterpart. The implications of these results for understanding and helping abused youth are discussed.