Institutionalization is a protection measure when children are in situations that put their physical and psychological integrity at risk, which implies the separation of their parents and family, having a placement in an institution, being in the protection of the State. The causes of institutionalization are multiple and the impact it causes is reflected in different areas such as the development of the child in general, such as mental, psychic structuring, health, and nutrition. Psychologically, children present alterations in their cognitive, emotional, sexual, and social domains with a high probability of developing several pathological conditions. This chapter presents an overview of this phenomenon based on several research investigations carried out in Spain, Latin America, and Mexico.