Three Observation Homes (Hyderabad, Warangal and Karimnagar) were identified for the study. The CCLs and the staff at these Observation Homes were interviewed regarding their experiences, opinions, roles and responsibilities in order to identify the challenges faced by both the staff and CCLs during their stay at the Observation Home. The Superintendents, Supervisors, Counsellors, House Mothers and Probation Officers were interviewed to gain insights about their understanding of their roles as per the JJ Act and Model Rules. The study highlighted the lack of adequate staff at the OHs as they did not have professional teachers, counsellors, vocational trainers etc. The OHs did not even have adequate security personnel thereby jeopardising the safety of CCLs. Lack of staff results in the existing staff taking up additional responsibilities and due to their lack of expertise in such roles, the services provided are not effective or useful to the CCLs. The infrastructure of the OHs can in no way be termed as “child-friendly” as the structures highly resemble jails / lock-ups. Though the Model rules require the OHs to have classrooms, library, sick rooms etc, the OHs do not have them. The study found that there is an immediate need to improve the infrastructure for the OH premises to be child-friendly.