Shame plays a central role in social and self development. This review presents an overview of the existing state of the developmental literature on shame, describing the major developmental theories of shame, research on the sources of individual differences in proneness to shame, and implications for mental and physical health. By toddlerhood, individual variations in proneness to shame emerge, and not long thereafter they are associated with psychological adjustment. Overall, evidence points to a variety of ways in which shame may be promoted, although much of it is correlational and based on retrospective reports by adults. Theory and research on the developmental consequences of proneness to shame indicate that it may be a vulnerability factor in the development of problems such as depression, aggression, social anxiety, and immune-related health problems. This also is correlational evidence and does not establish the etiological role of shame. To address the critical issues, an agenda for future research is outlined.