In the last decades, increasing attention is paid to the effects of growing up in a disadvantaged neighbourhood on the social outcomes of youth. In most of these studies, however, the focus is on statistical relations between neighbourhood characteristics and social outcomes. Little attention is paid to processes such as the interplay between neighbourhood settings, parenting styles and strategies and personal agency of youth. In this paper I will argue that neighbourhood effect research on youth can be enriched in three ways. First, relating to the ideas of ‘children’s geographies’, an argument is made for looking at the use and interpretation of neighbourhood settings by youth themselves. Second, parental styles and strategies as both mediating and moderating factors between neighbourhood characteristics and social outcomes should be included. And finally, youth should be seen as active agents in shaping their encounters with different neighbourhood settings and in forming social networks.