Compared the socioemotional development of 41 4-16 yr old male and female Iraqi Kurdistan orphans who were either in traditional foster care or in modern orphanages. Ss were examined at an index test and at a 1-yr followup regarding competency scores and behavioral problems at both test occasions, and posttraumatic stress reactions after 1 yr. The Achenbach Child Behavioral Check List and 2 posttraumatic stress disorder (PTSD) measures were used. While competency scores improved in both samples at the followup test, the problem scores increased in the orphanage sample and decreased among the foster care Ss. Moreover, the orphanage sample reported higher frequency of 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.