This study examines factors that allow children to maintain socially competent behaviors despite stress, focusing on 144 inner-city ninth-grade students with a mean age of 15.3 years. Stress was measured using a negative life events scale, while social competence was assessed through peer, teacher, and school grade ratings. Moderator variables included intelligence, internal locus of control, social skills, ego development, and positive life events. The study distinguishes between compensatory factors (directly related to competence) and protective/vulnerability factors (interacting with stress). Ego development was found to be compensatory, while internality and social skills were protective. Intelligence and positive events were involved in vulnerability processes. Resilient children were more likely to be depressed and anxious than competent children from low-stress backgrounds. The study also explores the relationship between stress and internalizing symptoms, finding that resilient children may experience higher levels of depression and anxiety despite appearing competent. Personality variables such as intelligence, locus of control, social skills, and ego development were examined as potential moderators. Results showed that internal locus of control and social skills were protective, while intelligence and positive life events were vulnerability factors. Ego development was a robust compensatory factor. The study highlights the importance of these variables in understanding resilience and adjustment in the face of stress. Limitations include the use of cross-sectional data and the potential for confounding variables. The findings suggest that resilience is not a fixed trait but can be influenced by various factors, and that even resilient children may experience difficulties under severe stress. The study contributes to the understanding of resilience in inner-city adolescents and emphasizes the need for further research on the role of personality variables in social competence.This study examines factors that allow children to maintain socially competent behaviors despite stress, focusing on 144 inner-city ninth-grade students with a mean age of 15.3 years. Stress was measured using a negative life events scale, while social competence was assessed through peer, teacher, and school grade ratings. Moderator variables included intelligence, internal locus of control, social skills, ego development, and positive life events. The study distinguishes between compensatory factors (directly related to competence) and protective/vulnerability factors (interacting with stress). Ego development was found to be compensatory, while internality and social skills were protective. Intelligence and positive events were involved in vulnerability processes. Resilient children were more likely to be depressed and anxious than competent children from low-stress backgrounds. The study also explores the relationship between stress and internalizing symptoms, finding that resilient children may experience higher levels of depression and anxiety despite appearing competent. Personality variables such as intelligence, locus of control, social skills, and ego development were examined as potential moderators. Results showed that internal locus of control and social skills were protective, while intelligence and positive life events were vulnerability factors. Ego development was a robust compensatory factor. The study highlights the importance of these variables in understanding resilience and adjustment in the face of stress. Limitations include the use of cross-sectional data and the potential for confounding variables. The findings suggest that resilience is not a fixed trait but can be influenced by various factors, and that even resilient children may experience difficulties under severe stress. The study contributes to the understanding of resilience in inner-city adolescents and emphasizes the need for further research on the role of personality variables in social competence.