This article examines the effects of depression in the sphere of social functioning. On the basis of previous research, it is hypothesized that a major depressive episode has both concurrent and lingering effects and that these effects are a function of the clinical features associated with the episode. This hypothesis is examined using a large community sample and a non-linear model containing both concurrent and lingering effect parameters. The results corroborate the hypothesized effects. Limitations of the current study are discussed and suggestions are offered regarding appropriate research designs. It is suggested that the most general limitation is theoretical. The existence of lingering effects is a phenomenon which presents a theoretical challenge that may prove strategic in understanding the nature and course of depression.