HIV/AIDS is perhaps a new global human treat in the record of human history (Belay, 2005). It also seen as a pandemic of global problem with serious implication for the future health, economic and behavior of human being in all nations. HIV/AIDS is pandemic of the most important and urgent public health challenges facing governments and civic societies of the world.Specifically, adolescents are at the center of the pandemic in terms of transmission, impact and potential for becoming orphans.When the child has no one else to look after him/her,childcare institutions usually take the responsibility. Childcare institution is an establishment founded by governmental or non- governmental organizations to give care for unaccompanied children.It regarded as a child rearing places where a group of unrelated children living together in the care of unrelated adults.As many researches indicated institutions are not favored for 'normal' development of children.Relied on this, this research compared the psychosocial adjustment status of institutionalized HIV/AIDS and non-HIV/AIDS orphaned adolescents with respect to their sex, age and duration of stay in institutions.