Depression in childhood can have a significant impact on immediate and long-term functioning. Cognitive theories of depression propose that individuals are characterised by processing preferences, particularly in memory, that lead them to think about negative material as opposed to more neutral or positive material. In order to examine memory biases in childhood depression, the literature review examines child and adolescent mood and memory bias research, specifically in relation to recall for newly acquired emotional material, and autobiographical memories. The links between memory biases and future expectations are discussed. Given that reductions of positive expectations have been linked to hopelessness and parasuicidal behaviour in adults, the empirical paper presents a study examining the relationship between memories, expectations and hopelessness in clinically depressed and anxious adolescents. Recall and anticipation of positive and negative experiences were examined by administering the personal memory/future thinking task. Participants generated positive and negative memories and future expectations in response to three time cues (a week, a year, 5-to-10 years). Participants also completed the voice Diagnostic Interview Schedule for Children, and self-report measures of depression, anxiety, and hopelessness. Clinical adolescents differed from non-clinical adolescents in producing fewer positive memories and expectations but the groups did not differ in the number of negative memories and expectations produced. Self-reported hopelessness in clinical adolescents was associated with fewer positive memories, whereas hopelessness was related to more negative memories in non-clinical adolescents. The results highlight the importance of positive cognitions in depressed and anxious adolescents and offers preliminary evidence that the mechanisms involved in adolescent hopelessness may be different to adults.