The objective of this study was to explore psychosocial problems, coping strategies andrnresilience of orphaned and non-orphaned vulnerable children learning at Selam number twornchildren village primary school in Addis Ababa. The study used primary sources of datarngathered through questionnaire. Cross-sectional comparative study design has been employed tornundertake this study. For the present study a total of 110 orphaned and non-orphaned vulnerablernchildren were selected through purposive and random sampling methods. Psychologicalrnwellbeing scales with demographic questions were used to collect data. The quantitative datarnwere analyzed using percentages, t-test and ANOVA. Findings of the study revealed that OVCrnliving in the orphanage experiences high psychosocial challenge such as anxiety, depression,rnloneliness and poor social interaction than outside the orphanage children. Gender has no effectrnamong the sample group on social problems but has effect on psychological problems; femalernOVC were more experienced to psychological problems. On the other hand, age and grade are arnsignificance difference among psychosocial problem, coping mechanism and resilience; whenrntheir age and grade level increase, OVC develop better coping mechanism and resilience.rnHowever, birth order and family survival status has no effect on social and psychologicalrnproblems. Gender, current live place and family survival status has a significant positive relationrnwith depression, anxiety, stress, coping strategies and resilience whereas grade and age arernnegative relations with depression, anxiety, stress, coping and resilience. The findings reveledrnthat, psychological and social challenges are positively correlated with coping and resilience.rnThis means, when there is more coping and resilience the effect on psychosocial challenges arerndecreased on OVC and the reverse is true. This study also depicted that living condition as arnresult of parental loses and vulnerability influence psychosocial situation of OVC. OVC living inrnthe orphanage showed higher psychosocial challenges than OVC living outside; lives in therncommunity.rnKey Words: Psychosocial challenges; coping strategies, resilience, orphans and vulnerablernchildren.