The major purpose of this study is to explore the Practice and challenges of child care institution in providing care and support for children. The research employed qualitative research paradigm and follows case study research design to explore the practice and challenges. Five key informants and 6 focus group discussants selected purposively were involved to come with credible findings. Primary data were collected through interview; focus group discussion and observation made in catholic child care institution. The findings of the study are analyzed thematically and the result shows that there are some types of care and support being provided for children such as: basic need, social service, alternative child care and psycho social services even though they are not sufficiently provided by this CCI. The research finding also showed challenges these are:lack of budget,poor management, monitoring and evaluation system, weak child-caregiver attachment,absence of professionally qualified workers, poor quality of care and support andlack of basic facilities are also major challenges that child care institution is facing due to factors that are emanated from the government, the community and child care institution itself. The solutions of these challenges are, the child care institution should provide quality care and support by giving more emphasis to community based child care alternatives. In addition to this, the CCI should be limited challenges and managed properly, legal frameworks regarding to institutional care should be revised .Monitoring and evaluation systems should be emphasized, and stake holders should work together. Moreover, as the study’s unit of analysis is only limited to institutional level, future researches can also be conducted by taking a unit of analysis in the institution. Keywords: child care institution, practice, and challenges