The author reports on 37 children who are being raised by female homosexuals or by parents who have changed sex (transsexuals): 21 by female homosexuals, 7 by male-to-female transsexuals, and 9 by female-to-male transsexuals. The children range in age from 3 to 20 years (mean = 9.3) and have lived in the sexually atypical households for 1-16 years (mean = 4.9). Thirty-six of the children report or recall childhood toy, game, clothing, and peer group preferences that are typical for their sex. The 13 older children who report erotic fantasies or overt sexual behaviors are all heterosexually oriented.