This study explored the links between the development of language and the development of social cognition. Measures of language, phonological short-term memory, social cognition, and social competence of two groups of children with specific language impairment (SLI), one group attending a special school, the other attending integrated educational placements, were compared with those of chronological and language age-matched normally developing peers (N = 8 in each group). Significant differences between the scores of normally developing children and the scores of the group of children with SLI who attended the special school were found for social cognition and ratings of social competence. Children with SLI from integrated placements did not differ significantly from other groups on these measures. Assessments of language development and phonological short-term memory were not related to social cognition and social competence. Models of the possible relationship between social cognition and language development in children with SLI are discussed.