The current study examined the effect of a friend's presence on toddlers' behavior in high child-to-staff-ratio daycare settings. Toddlers (N = 38) were video-observed in the presence or absence of a verified friend in two situations that burden staff: morning separation and lunchtime (overall, 152 video observations). Higher levels of positive social engagement, fewer agonistic behaviors toward peers, and fewer occurrences of distress were observed in the friend's presence. The duration of morning separations decreased by half and toddlers contacted the caregiver less during separations and exhibited more prosocial behaviors. Overall, toddlers demonstrated greater empathic concern when their friend was present. During lunchtime, they also displayed greater concern toward peers other than their friend. Friendship, even at a very young age, can constitute a meaningful emotional resource for soothing and security.