More than 4,000 families of the Muslim community in the state of Gujarat in India have been facing internal displacement after a communal riot broke out in 2002. Many of them have also been facing bereavement and trauma due to loss of family members and/or sexual assault during the riot. Using innovative qualitative methods, this study explored the experiences of trauma reactions, social suffering, and healing among the children of these families in the Panchmahal district of Gujarat. Findings show the presence of experiences of trauma reactions (trauma specific fear and posttraumatic stress symptoms, such as avoidance and sleep disturbance) and social suffering (loneliness, separation from loved ones, and deprivation) among these children. Findings also show the experiences of healing (support through relatedness, guided by religious values, and harmonious thoughts and experiences) among children, as facilitated by their socio-religious values and the emotionally supportive environment they are receiving at their school. Implications of the findings are discussed in terms of further psycho-social care needed by children such as these.