According to socialization theory, family socialization and peer group socialization affect both school problem behavior (truancy and poor academic performance) and psychosocial factors (loneliness, depression, and thoughts of suicide). These intervening variables also affect alcohol, marijuana, and other drug use of the adolescent. The findings show that students who abstain from alcohol and other drug use come from families that were less likely to use drugs, had friends who were less likely to use drugs, and were not as likely to have school or psychosocial problems when compared to students who did use alcohol and other drugs. These results indicate that strong peer group effects begin before the seventh grade. There was a relatively low correlation between psychosocial concerns and adolescent chemical use, but a higher correlation with alcohol and marijuana use. 1 figure, 6 tables, and 38 references