Research on gender variant children (including those who meet criteria for Gender Identity Disorder in Children) originated with the heterosexist goal of preventing gender and sexual minority identities in adulthood. When we re-examine what is known about these children outside of pathologizing assumptions, what do we know about promoting their mental health and adaptation? Taking a developmental psychopathology frame, we argue for a shift in research paradigms away from the study of (1) outcomes of sexuality and gender identity and (2) the child in isolation toward (1) outcomes of adjustment and well-being and (2) the child in contexts that affect adjustment.