Results: (a) For prevalence rate of CD, less than 3% of the respondents had ever engaged in CD (b) Males reported a higher percentage of CD than females did (c) Different measures of PYD and perceived family functioning were negatively related to adolescents' CD behavior (d) Higher levels of PYD and better mutual support, love, and concern among family members were related to a lower level of CD and (e) A mild relationship was found between CD and substance abuse. Design and Participants: In 2010, during the Wave 2 data collection of a 6-year longitudinal study on PYD in Hong Kong, 3,638 Grade 8 students were surveyed. Study Objective: We sought to study the prevalence of the compensated dating (CD) phenomenon among early adolescents in Hong Kong and to identify psychosocial correlates of CD, particularly basic demographic factors, positive youth development (PYD) qualities, and perceived family functioning.