An observational study of peer dynamics found three very different systems of peer interaction among Hawaiian children at three preschools. The children were demographically similar: part-Hawaiians from lower to lower-middle class backgrounds. Sixty children were studied in videotaped sessions. In Preschool 1, children usually play as dyads; in Preschool 2, as stable groups of four to seven; and in Preschool 3, as fluctuating groups of three or four. Observations indicated that differences arise because children in the different schools spent their days in different social situations. Teachers established different social contexts and encouraged different interaction techniques; presented different interactive models to students; and held different beliefs on how students should relate to each other. Children were found to be very adaptable to each of these different contexts. (Tables summarize differences in peer dynamics in the three preschools and include selected transcripts of the observed play.) (TM)