The estimated 1.5 million children in the United States with parents who are incarcerated have experienced disrupted and multiple placements, decreased quality of care, financial hardship, and lack of contact with the parents. Consequently, these children are at risk for poor academic achievement, substance abuse, delinquency, and future incarceration. This issue brief examines characteristics of parents in prison, discusses the effects of parental incarceration, and makes recommendations for intervening to address the children's special needs. The following recommendations are made: (1) identify children in out-of-home care who have incarcerated parents; (2) identify gaps in services and advocate for resource and service development; and (3) enhance services to better meet the needs of children of imprisoned parents by considering ways to provide preventive services, strengthen permanency planning services, strengthen reunification services, and provide more training to caseworkers and foster parents. (KB)