There are at least three aspects to the psychological impact of acquired immune deficiency syndrome (AIDS) on children. First is the psychological response of the child with AIDS; second, the response of the child in a group at high risk for AIDS; and third, the psychological response of children in general to the perceived threat from AIDS. Pointing out that the majority of pediatric patients with AIDS are preschool children, this paper describes the child and adolescent ill with AIDS, characterizes the child's understanding of his/her condition, anticipates developmental problems associated with AIDS, and considers the effects of stigmatization on those having AIDS or in association with those having the disease. Implications for clinicians are discussed. It is concluded that the type of care system established for many of the survivors of disasters must be put in place to adequately address the needs of children and adolescents at risk for AIDS. (RH)