Children growing up in harsh environments may develop intact, or even enhanced, skills for solving problems in high‐adversity contexts (i.e., 'hidden talents'). Summarizing theory and research on hidden talents, this Element proposes that stress-adapted skills represent a form of adaptive intelligence enabling individuals to function within the constraints of harsh environments. It discusses the alignment of the hidden talents model with current knowledge about brain development following early adversity; examine potential applications of this perspective to multiple sectors concerned with youth from harsh environments, including education, social services, and juvenile justice; and compare the hidden talents model with contemporary developmental resilience models. It concludes that the hidden talents approach offers exciting new directions for research on developmental adaptations to adversity, with translational implications for leveraging stress-adapted skills to more effectively tailor education, jobs, and interventions to fit the needs and potentials of individuals from a diverse range of life circumstances.