The paper addresses the question of whether parental death always has a strongly negative effect on children's outcomes using quantitative and qualitative data from Young Lives, a longitudinal study of childhood poverty in Ethiopia. It investigates the validity of potential mediating factors identified by other studies in Sub-Saharan Africa using data from the whole sample (n = 973) and explores these processes in-depth through the experiences of three orphans in one community in Addis Ababa. The paper concludes that the outcomes of orphans and non-orphans in poor communities are not significantly different, supporting the need to address vulnerability at a societal level. Nonetheless, specific groups, for example, older female children who have lost their mothers, may face particular risks that should be addressed with targeted interventions.