The data for this study were obtained within the framework of the psychosocial assistance program for families with children in one of the oldest displacement shelters in Croatia. Over a period of 6 months, the mothers (n=58) assessed the psychosocial adjustment difficulties of their children and how displacement affected their relationship with their children (n=109). The study showed that as time passed in displacement, mothers talked significantly less with their children and were generally more nervous. The most common difficulties manifested by children were appetite disorders, night fears, sleeping disturbances in general, increased sweating, fear of separation from their mother, despondency, and general fearfulness. Over time the reported incidence of stress-related reactions in children significantly decreased; however, after a year spent in displacement, 12 percent of the children still manifested five or more stress symptoms. Children with a higher incidence of disorders had mothers whose adaptation to displacement was poorer and whose relationship with their children was less favorable. Their families were more often separated. Particularly apparent was the importance of providing psychological assistance for mothers and children who are unable to cope with the stress of displacement. 5 tables and 33 references