Many children are exposed to negative and distressing events. Understanding the processes underlying memories of such events is critical, especially in the present world climate in which the Australian public is increasingly confronted with threats of terrorism and other negative world events. This research will contribute directly to understanding why some children develop maladaptive responses to major life vents, and others appear to adjust with few psychological difficulties. The research will pinpoint better management strategies for children affected by trauma by improved understanding of how traumatic memories are developed, as well as identifying critical variables that are amenable to change early after trauma exposure.