Although genetic and environmental variance accounts for the association between temperament and childhood externalizing behavior, few studies have investigated the etiology underlying temperament development and externalizing behavior. Using 157 monozygotic and 198 dizygotic twin pairs from the Louisville Twin Study, we tested the general hypothesis that genetic variance would primarily account for the association between infant and toddler temperament, as measured by activity, task orientation, and affect-extraversion, from 6-36 months of age and childhood aggression at age 7. Bivariate and latent growth model analyses revealed that increases in activity significantly predicted higher levels of aggression whereas increases in task orientation and affect-extraversion significantly predicted lower levels of aggression. Genetically informed models showed that genetic correlations increased from 6 to 36 months between aggression and activity and task orientation. In biometric latent growth models, we observed small to moderate genetic correlations (rG = .35, –.20, and –.25) between aggression and change in activity, affect-extraversion, and task orientation, respectively. Nonshared environmental correlations were small and nonsignificant but tended to increase starting at 30 months. Findings suggest that although genetic variance is the primary etiological component between temperament development and childhood aggression, environmental factors may begin to account for their association during toddlerhood.