AbstractThe significance of genotype–environment interplay is its focus on how causal factors, whether environmental or genetic, have their effects. It is difficult to establish causality in observational research because of the potential for reverse causation and confounding. Most environmental measures are heritable, which means that their effects on the risk for psychopathology are potentially confounded by genotype. In contrast, genetic influences on psychopathology may be mediated by their effect on environmental exposures. The existence of genetic influences on putative environmental risk factors offers both possibilities and pitfalls for research into environmental epidemiology. We use the example of parenting and its influence on childhood externalizing problems to review how genotype–environment correlations can be exploited to demonstrate causal processes in pyschopathology.