Though a large body of research has investigated the impacts of domestic violence on adult victims only few studies have been devoted to the exposure of children to probable inter-spousal trauma that disrupt their neurological and biochemical pathways in development. The aim of this paper is to analyse the current empirical research that discusses the biological and psychological inference of domestic violence and risky family environment on children's health. In realizing this objective, the paper used the ecological framework to explain the interaction effects of bio- psychological processes on emotional regulation and social competence skills of children living in a domestic violence and risky family environment. Finally, the study shows that a risky and harsh early family environment exacerbates disturbances in children' physiological and neuro-endocrine responses to stress, and also has long-term adverse implications on their mental health.