An urban working class sample of depressed mothers with two-yr-old children was compared with a control group of non-depressed mothers using maternal interviews, home observation of mother/child interaction, and developmental assessment of the children. Measures were repeated after six months. Children of depressed mothers showed more emotional and behavioural disturbance and delay in expressive language development. Depressed mothers had more past and current adverse experiences, particularly in close relationships. In general depressed mothers were less responsive to their children and less able to sustain social interaction: their children were more often distressed, but there was a big variation in quality of mother/child interaction within the depressed group.