Research has consistently linked homophobic bullying (e.g., teasing, name-calling, use of slurs) with an array of negative outcomes for children and adolescents. While most of the extant research covers risk factors related to homophobic bullying perpetration and victimization, there is a budding literature surrounding protective factors of these behaviors and their associated consequences. This article reviews 32 studies that focused on protective factors associated with homophobic bullying perpetration and victimization among children and adolescents. The review examines homophobic bullying as it applies to lesbian, gay, bisexual, transgender, and questioning (LGBTQ) youth and their heterosexual and cisgender peers. Using the social-ecological framework, this paper highlights protections at the individual level (e.g., sexual identity, self-esteem), the family level (e.g., social support at home), the peer level (e.g., positive friendships) and the school level (e.g., school policies against homophobic bullying, positive school climate). With the aim of contributing to the development of the field, directions for future research are also discussed.