Lookin through the lens of ecological system theory, this paper used a mixed-method approach, based on 20 interviews and 208 Early Childhood Education (ECE) teacher questionnaires, to elaborate the position of ECE in Pakistan. The study indicates that ECE is between a rock and a hard place in Khyber Pakhtunkhwa, Pakistan. The findings further show that ECE is provided by less qualified and inexperienced teachers, who give less attention to the physical and psychological needs of the students. The classrooms are overcrowded and lack relevant teaching–learning materials. Moreover, the single-teacher policy and overcrowded classrooms hinder students’ motivation, the delivery of quality education and the development of good behaviors. These challenges are also the main causes of students’ dropouts. This paper increases people’s understanding of ECE and its challenges in Pakistan. For ECE development, the paper recommends separating ECE from primary schools and giving it a budget to purchase adequate and relevant resources.