Introduction Sleep disturbance (SD) could have negative impact on the general well-being of children with cerebral palsy (CWCP). Objectives The purpose of this study was to assess the prevalence of SD and its impact on quality of life and exercise participation among CWCP. Material and Methods In the cross-sectional study, CWCP and their siblings were recruited from secondary and tertiary hospitals in Kano City. SD, gross motor function (GMF), spasticity and quality of life were assessed with SD scale, GMF classification system, modified Ashworth scale and pediatric quality of life inventory, respectively. Data was analyzed with Mann-Whitney U and chi-square tests, linear and hierarchical regressions using SPSS version 20.0. Results There were 200 CWCP (aged 4.35±8.03 years) and 200 siblings (aged 5.89±3.06 years). The prevalence of SD in CWCP was 31.5%. CWCP suffered more SD than their siblings (p<0.001). SD in CWCP is influenced by GMF level (ß=0.378, p<0.001) and gender (ß=0.16, p<0.05). SD has negative influence on quality of life (ß=-0.18, p<0.001), active participation in home-based (ß=-0.23, p<0.000), and clinic-based exercises (ß=-0.24, p<0.00). GMF levels (ß=-0.505, p<0.0001), hamstring spasticity (ß=-0.250, p<0.005), and age (ß=-0.207, p<0.001) also have influenced on quality of life. Conclusion One-third of the CWCP suffered pathologic SD, which has negative impact on their quality of life and the ability to actively participate in both home and clinic-based exercises. Aside SD, other factors such as child’s age, spasticity level and severity of motor impairment also affected their quality of life negatively. Enhancing the motor abilities of CWCP may improve their quality of sleep and quality of life.