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The majority of emerging adults in the United States spend time in cohabiting unions. Prior research has suggested that higher levels of sexual non-exclusivity may exist among those in cohabiting relationships compared to marital unions. Although these basic patterns have been explored in prior work, research examining the potential reasons why levels of sexual non-exclusivity differ by union status has been limited. Drawing on a relational perspective and using the fifth wave of data from the Toledo Adolescent Relationships Study (TARS), the present study found that higher levels of sexual non-exclusivity in cohabiting relationships were explained by intimate relationship characteristics and sexual histories rather than sociodemographic factors, partner heterogamy, or partner- and couple-level drug use. These findings highlighted that understanding the higher rates of sexually non-exclusive experiences in cohabiting relationships, compared to marital relationships, requires attention to specific dynamics of the intimate partnership and prior relational experiences of both partners. The study concluded that cohabitation has a unique place in emerging adults’ relationship landscape and may set the groundwork for future relationship functioning.