Reformed wild child Nicole Richie is no stranger to the perils of Hollywood.

And she's hoping history won't repeat itself now that her sister, Sofia, 16, is poised for fame as the new spokesmodel for Madonna's Material Girl line.

lionel richie

Nicole and Sofia with dad Lionel Richie in 2012.

"Sofia's been hanging out with Kylie Jenner and Justin Bieber, and she's frequently at parties where alcohol and drugs are all around," an insider tells Life & Style. "[Nicole] knows how easy it is to cave to peer pressure."

The 33-year-old, who's spent time in both rehab and jail, "is petrified that Sofia is going to follow in her self-destructive footsteps," says another source.

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That's why she's resorted to spying on her baby sis. "Sofia recently flipped out because she caught Nicole looking through her phone," the first insider says. "But Nicole is just being protective."

For more on Nicole Richie and Sofia’s relationship, pick up the new issue of Life & Style, on newsstands now!