This study compares the development of children living in orphanages with that of children living in slums with their biological parents in Odisha, India. The study examined 3 orphanages of Bhubaneswar, one orphanage of Cuttack and two slum area in Bhubaneswar. The research team observed high levels of developmental delay among children residing in orphanages as compared to children living in urban slum with their parents. Though the researchers found that children suffer from developmental delays when they are deprived of maternal care and are placed in institutions, they nevertheless recommend in this article that the government open up more orphanages with more caregivers for better care of the individual orphan children.