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The focus of this article is on negative effects of institutionalization in children, which is based on findings of a descriptive study conducted in India. The author reviews related literature in order to discuss the effect of institutionalization in children and the importance of addressing those children's unmet social and emotional needs. The discussion includes significant findings of the author's study. The author explores strategies for improving these children's outcomes, including placing the children in adoption or foster care so that they will have a family environment.