A study on the emotional competence and family environment of school children (13-15 years) was undertaken in the year 2013-14. The sample for the study included children in the age of 13-15 years who were studying in 8th and 9th standards from different schools located in two cities i.e. Dharwad and Shillong of Karnataka and Meghalaya states respectively. Two schools were randomly selected from each cities, one government and a private school. Total 160 school children were selected, out of these 80 were selected from Shillong city and 80 from Dharwad city, Emotional competence scale by Bharadwaj and Sharma (1995) was used for measuring emotional competence, Family environment scale by Bhatia and Chadha (1993) was used to assess family environment and sociometric technique was employed to see the peer status of the school children. The results of the study revealed significant difference between Dharwad and Shillong children in the overall emotional competence where Dharwad children had better emotional competence. It was also noticed that peer accepted children had better emotional competence than peer rejected children. In case of family environment dimensions between Dharwad and Shillong children, significant difference was observed in dimensions such as cohesion, expressiveness, acceptance and caring and organization. Also family environment dimensions such as cohesion, expressiveness, acceptance and caring and organization had significant influence on overall emotional competence. The study findings also showed that emotional competence improved with age. The study also revealed that boys had better emotional competence than girls. Familial factors such as parent’s education, income, socioeconomic status and family size were significantly associated with overall emotional competence. Private school children were better in emotional competence compared to government school children.