This study investigated early school adjustment of institutionalized and home-reared children. Subjects were 118 institutionalized (56 first and 62 second grade children; 66 boys and 52 girls) and 125 home-reared children (69 first and 56 second grade children; 65 boys and 60 girls) in Seoul. Data were analyzed with t-test and two-way ANOVA. Measures of school adjustment included relationships with leachers, relationships with peers, attitudes on school atmosphere, and observance of school regulation. Results showed that institutionalized children had lower scores than home-reared children in school adjustment, especially relationships with peer and observance of school regulation. For institutionalized children, there was a significant difference in attitudes on school atmosphere depending on grade. For home-reared children, there was a significant difference in school adjustment depending on sex.