There is a negative association between intelligence and psychopathology, implying that individuals with intellectual disability are at greater risk for psychopathology. We analyzed data on intelligence and psychopathology in seven-year-old twin pairs (npairs ≥ 616) to determine the degree to which genetic and environmental factors common to intelligence and psychopathology explain the association, and to examine whether genetic and environmental effects on psychopathology are moderated by intelligence. We found that intelligence correlated negatively with internalizing, externalizing, and neurodevelopmental psychopathology. The associations were mainly due to common genetic factors. Intelligence moderated genetic and environmental effects on internalizing psychopathology (anxiety and negative affect), but not those on externalizing and neurodevelopmental psychopathology. The heritability of anxiety and negative affect was greatest in individuals with below-average intelligence. We discuss mechanisms through which this effect could arise, and we end with some recommendations for future research.