This report aims to characterize, in greater detail, the delicate psychological processes children go through when facing two languages and two cultures. In doing so, it is suggested that bilingualism can play an important role in cognitive and linguistic growth. Data used in this study is taken from a larger study involving 30 Italian bilingual children attending a British school in Italy. In that study the linguistic development of these two groups of bilingual students are compared with that of monolingual students. The environment in which bilingual children learn language is emphasized. The present discussion focuses on the psychological and social aspects of bilingual development of 9 children: seven compound bilinguals and two coordinate bilingual. (JL)