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The behavioral and psychological differences between women and men have puzzled social scientists for many years. Differences between men and women are often overestimated and their behavioral, cognitive and emotional differences are often attributed to innate biological factors. Stereotyped beliefs about men and women often have serious social and clinical implications. Research in gender psychology has shown that men and women are more similar than different. Besides biological models, psychologists have given many models which helps describe and explain the various psychosocial theories of gender development. This paper will attempt to distinguish between two often confusing terms sex and gender and highlights various psychosocial models of gender development leading to possible gender differences in terms of cognitions, emotions and behaviors.