Summarizes the psychological impact of war in Croatia on the hundreds of thousands of children who were exposed to multiple traumatic events. Many children lived through air raids, shelling, and bombing and suffered their consequences, including loss of family members, homes, and communities, abrupt changes in family structure, and prolonged displacement. Study subjects were mothers and children living in a refugee center in Zagreb, Croatia, who were interviewed several times over a 3-year period. Displacement adversely affected children’s well-being, as manifested by eating disorders, sleep disturbances, behavioral problems such as aggression and withdrawal, emotional problems such as separation fear and despondency, and academic difficulties. Over time, mothers reported a decrease in their children’s stress-related symptoms. However, children who lacked a supportive family environment displayed a high level of stress-related symptoms throughout the entire refugee period and were considered to beat higher risk for developing further psychological difficulties. A number of activities, including social skills training for the children, therapeutic theater for adolescents, and family counseling, were found to be helpful in improving displaced children’s coping abilities.