The aim of this study was to investigate the unique and combined role of friendship quality and friends' aggression in regard to the persistence of young children's physical aggression from kindergarten to grade 2. The sample included 1555 children (808 girls) assessed annually using teacher ratings. Two theoretical perspectives (i.e., the social learning and the social bonding perspectives) served as frameworks to guide the analyses and interpret the results. In line with the social learning perspective, friends' aggression was related to a significant increase in children's physical aggression. However, in line with the social bonding perspective, good friendship quality played both a compensatory and a protective role, by, respectively, reducing children's initial level of physical aggression and by mitigating, albeit marginally, the associations between friends' and children's physical aggression. These results suggest that fostering a positive relationship between friends in the early school years may decrease physical aggression even if the friends are aggressive.