This practice paper from the Australian Institute of Family Studies presents an overview of the research on the impacts of trauma on children’s brain development and offers basic principles for responding to children’s trauma. The paper focuses on the experience of trauma of children who have been placed into out-of-home care, particularly as they are more likely to have experienced other adverse experiences in childhood such as abuse and neglect. The paper summarizes the current evidence on this topic and provides practical recommendations for facilitating cognitive development in children in care.