In order to investigate orphans' situation and development in Iraqi Kurdistan, samples from the two available orphan care systems, the traditional foster care and the modem orphanages, are examined at an index test and at 1-year follow-up regarding competency scores and behavioral problems at both test occasions, and post-traumatic stress reactions at a 1-year follow-up. Achenbach Child Behavior Check List (CBCL) and two instruments regarding post-traumatic stress disorder (PTSD) were used. While competency scores showed an improvement in both samples at the follow-up test, the problem scores increased in the orphanage sample and decreased among the foster care subjects. Moreover, the orphanage sample reported higher frequency of post-traumatic stress disorder (PTSD) than the foster care children. The results are discussed with regard to the value of the Kurdish society's own traditions in taking care of orphans.