Context: Childhood development relies on stable caregiving, and disruptions like parental loss can impact emotional and behavioural outcomes. Institutionalized children, often deprived of parental care, are at greater risk for internalizing (e.g., anxiety, withdrawal) and externalizing (e.g., aggression, hyperactivity) behaviours. Understanding how parental living status affects these behaviours is key to improving their psychological well-being. Aims: This research aimed to study and compare the occurrence of internalizing and externalizing behavioural problems among institutionalized children in relation to their parental living status. Settings and Design: A cross-sectional observational study was conducted among school-going children in Krishna district, Andhra Pradesh, India. The sample included institutionalized (Group A, n=120) and non-institutionalized (Group B, n=100) children. Methods and Material: Behavioural assessments using the Strengths and Difficulties Questionnaire (SDQ) were administered to caretakers and teachers. Data on sociodemographics, parental living status, duration of stay, and sibling presence were collected. Statistical analysis used: Chi-square tests analysed associations between variables, with p ≤ 0.05 considered significant. Results: Internalizing behaviours showed no significant group differences (p=0.4224). However, externalizing behaviours, particularly hyperactivity, were lower in institutionalized children (p=0.0025). Parental loss was linked to higher internalizing behaviours (p=0.0074). Gender, duration of stay, and sibling presence were not statistically significant, although siblings showed a near-significant protective effect (p=0.0587).  Conclusion: Parental loss heightens internalizing behaviours in institutionalized children. Emotional support, attachment-building, and maintaining sibling bonds may mitigate adverse effects. Targeted interventions are needed to address these children’s psychological needs.