A three‐wave longitudinal study among ethnically diverse preadolescents (N = 597 at Time 1, ages 9–11) was conducted to examine adaptive, maladaptive, mediational, and bidirectional processes of relational and physical aggression, victimization, and peer liking indexed by peer acceptance and friendships. A series of nested structural equation models tested the hypothesized links among these peer‐domain factors. It was hypothesized that (1) relational aggression trails both adaptive and maladaptive processes, linking to more peer victimization and more peer liking, whereas physical aggression is maladaptive, resulting in more peer victimization and less peer liking; (2) physical and relational victimization is maladaptive, relating to more aggression and less peer liking; (3) peer liking may be the social context that promotes relational aggression (not physical aggression), whereas peer liking may protect against peer victimization, regardless of its type; and (4) peer liking mediates the link between forms of aggression and forms of peer victimization. Results showed that higher levels of peer liking predicted relative increases in relational aggression (not physical aggression), which in turn led to more peer liking. On the other hand, more peer liking was predictive of relative decreases in relational aggression and relational victimization in transition to the next grade (i.e., fifth grade). In addition, relational victimization predicted relative increases in relational aggression and relative decreases in peer liking. Similarly, physical aggression was consistently and concurrently associated more physical victimization and was marginally predictive of relative increases in physical victimization in transition to the next grade. More peer liking predicted relative decreases in physical victimization, which resulted in lower levels of peer liking. The directionality and magnitude of these paths did not differ between boys and girls. Aggr. Behav. 40:273–287, 2014. © 2013 Wiley Periodicals, Inc.