Aboriginal children are overrepresented among children and youth placed in out-of-home care in Canada. This fact becomes even more troubling when these children are placed in non-Aboriginal out-of-home care where the preservation of cultural heritage and identity is questionable. The current study examined 5,128 cases of child maltreatment investigations of Aboriginal and non-Aboriginal families collected by the 1998 Canadian Incidence Study of Reported Child Abuse and Neglect (CIS-98). The CIS-98 was a national study that tracked child welfare investigations from the point of referral to the initial disposition; data include decisions on substantial findings of maltreatment, decisions about child placement, and applications for mandatory service court orders. Results of the comparative analysis reveal that Aboriginal families face worse socioeconomic conditions, are investigated more often for child neglect, are less often reported for physical or sexual abuse, and report higher levels of substance abuse. Aboriginal children are overrepresented at every decision point: their investigations are more likely to be substantiated, their cases are more likely to remain open for ongoing services, and they are more likely to be placed in out-of-home care. Culturally-based community development and prevention programs that focus on neglect eradication and include a substance abuse component are suggested. Tables, references