During recent years a number of Local Education Authorities have opened Hostels for Maladjusted Children but few have been open long enough for any adequate review of their work to be undertaken, or for principles of working to be clearly formulated. Winnicott and Britton (1944, 1947) have discussed their work in Hostels for evacuated children during the War, and the Ministry of Health (1944) also reviewed their war-time experience in similar Hostels. Little however has been written on the work of Hostels for Maladjusted Children as part of the ordinary peace-time work of a Child Guidance Service. This paper reviews the work done during the five years 1946 to 1951 in two Hostels in a Midland City and comments on the experience gained. It is felt this may be of general clinical interest, and of value for comparison with observations being made in other areas. As part of the review a study has been made of 50 unselected children who, having been in the hostels, had been discharged during that period, and whose subsequent progress it has been possible to follow.