Examines the extent to which academic achievement and work habits of first and second graders are predicted by classroom social status over the kindergarten, first-, and second-grade period. Three hundred and forty five children (163 boys and 182 girls) from a southern California community comprised the sample. The ethnic distribution of the sample was approximately 45% Caucasian, 42% Latino, 9% African American, and 5% Asian or other ethnicity. Findings suggest that peer rejection assessed as early as kindergarten and social rejection that is stable across 2 years (kindergarten-first grade or first-second grade) are associated with deficits in first-grade work habits and second-grade academic achievement and work habits. In contrast, stable social acceptance appears to buffer children from early academic difficulty. The pattern of findings remain significant after controlling for initial kindergarten academic competence. The implications for clinical and educational intervention programs are discussed.