Although high rates of internalizing and externalizing psychopathology have been documented among transgender and gender nonconforming (i.e., trans) youth (Aitken, VanderLaan, Wasserman, Stojanovski, & Zucker, 2016; Steensma et al., 2014; Zucker et al., 2012), some research indicates that trans children who have the support of their parents may not be at elevated risk for psychopathology relative to their cisgender peers (Hill, Menvielle, Sica, & Johnson, 2010; Olson, Durwood, DeMeules, & McLaughlin, 2016). Little research has tested contextual factors influencing the development of psychopathology among trans kids. The current study tests the relation between parent-reported peer rejection, family discord, and children’s internalizing and externalizing symptoms in a sample of 49 trans children. Cross-sectional analyses revealed that peer rejection was associated with greater internalizing and externalizing symptoms. High family discord (vs. healthier family functioning) was associated with greater internalizing symptoms among kids without peer rejection. However, among kids who experienced peer rejection, there was no significant difference in internalizing symptoms between kids with high (vs. low) family discord. The current research indicates that peer rejection and family discord are differentially related to internalizing and externalizing symptoms among trans youth, and that experiences of peer rejection may be transient, rather than stable, over time.