Describes a program to identify and help prevent mental health problems exhibited by refugee children in Croatia, who had suffered physical trauma, personal losses, malnutrition, and even incarceration as a result of war. The study included 2 groups of internally displaced families living either in a shelter or with host families in Zagreb. Detailed, structured interviews with mothers yielded descriptions of children’s reactions to the various stressful events of displacement. The most common physical manifestations of stress included eating disorders and sleeping disturbances. On the behavioral level, many children exhibited separation fears, aggression, withdrawal, and hyperactivity; on the emotional level, children were despondent and generally fearful. Findings also revealed that: (1) displaced children living with host families had less stress-related symptoms; (2) children had higher stress levels if their mothers were having greater difficulty adapting to displacement; and (3) the overall situation of the children living in the shelter was less favorable. Effective strategies for psychological assistance include emphasizing primary prevention programs but allowing for individual counseling, identifying strengths and weaknesses of the family as a whole as well as of individual members, bolstering a socially supportive milieu, and addressing the diverse needs of a heterogeneous population.