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One of the ways in which children of depressed parents are affected is in the area of cognitive schemata. In cognitive behavioral theory, schemata drive emotions and therefore influence behavior. Subsequently, a better understanding of the cognitive schemata of children of depressed parents is attempted in this paper. It offers a review of the theoretical literature on schema development, empirical literature on children of depressed parents, discusses the intersection of the two, and how research and theory influence each other. Most of the research here focuses on children from the ages of birth through four years old. Results indicate that the parenting process is truncated by depression in either parent, affecting the child's attachment and influencing the development of cognitive schemata of the child. Some of the other factors that affect the development of cognitive schemata of children of depressed parents included the child's own brain activity and the relational environment of the home where the child lives. It seems that children of depressed parents are forced into self-sufficiency beyond their capabilities, and so they experience a sense of failure before they are capable of processing disappointment. Fear also plays a large role in their cognitive schemata. (RJM)