Focuses on past and current research on the social, emotional and moral development of children of high intellectual potential. Current educational and psychological concerns regarding the incidence of underachievement, lack of motivation, depression and 'dropping out' among gifted children are examined. Implications of these concerns for educators and parents of gifted students. Influence of personalogical variables, including motivation, self-esteem, friendship choices and attitudes towards school and study, on the translation of high potential into high performance. Teaching strategies and class and school structures which facilitate or impede the development of positive social attitudes and supportive peer relationships in gifted children are critically analysed.