This chapter addresses issues of juvenile delinquency and breaking the law by children and adolescents. It explores individual, familial and social factors involved in these phenomena. It explores the psychodynamic understanding of delinquency, in terms of understanding the pathways from frustration, traumatic experiences, school failures and impulse control in the individual. Families who are marginalized and live in poverty experience more stressors and the children tend to face harsher consequences when they break the law, particularly those of minorities in developed countries. We describe the work of August Aichhorn in terms of his approach to an understanding of psychosocial factors involved in juvenile delinquency and the need to address those issues if one hopes to rehabilitate the youth. Preventive approaches are also described, as well as different models of rehabilitation once the child has become involved with the legal system.