Developmental theory describes the central importance of peer relationships in the lives of young adults (e.g., Erikson, 1963). In this study we tested the importance of peer relationships to academic outcomes. First-year undergraduates completed a self-report survey to indicate the number and closeness of their friendships. We compared these variables to academic outcomes, including grade point averages (GPA) and persistence throughout the first college year. Having trust in, sharing common interests with, and the extent of conflict with a new college friend was associated with GPA and persistence to the second college year. Results are discussed in the context of assisting students in the transition into college. (Contains 4 tables.)