The primary goal of this report is to examine the context in which youth violence occurs. It is concerned with interactions among adolescents that lead to violent exchanges, the intentions and emotions experienced by the participants and the role of audiences in instigating, escalating or defusing violent interactions. The report, based on interviews with youths to elicit accounts of violent incidents in which they were involved, pays particular attention to gangs, substance abuse and guns as situational factors in this context. Research had suggested the significance of the perceptions and attitudes of youth toward violence and the meanings they attribute to violent conflict resolution. Thus, the report also examines the identity and status processes in those violent transactions. Finally, the report examines the implications of research findings for youth violence prevention efforts. The report discusses findings relative to other research efforts and suggests directions for practitioners implied by those findings. Notes, tables, references