Decreased severe respiratory illness was observed during the first 2 years of the COVID‐19 pandemic, with a relatively smaller decrease among children with medical complexity (CMC) compared to non‐CMC. We extended this analysis to the third pandemic year (April 1, 2022, to March 31, 2023) when pandemic public health measures were loosened. A population‐based repeated cross‐sectional study evaluated respiratory hospitalizations among CMC and non‐CMC (<18 years) in Ontario, Canada. Among the 67,517 CMC and 3,006,504 non‐CMC in Ontario, there were more CMC respiratory hospitalizations compared with the expected prepandemic levels (n = 3145 hospitalizations, corresponding to rate ratio [RR], 1.20; 95% confidence interval [CI], 1.16–1.25) with an even larger relative increase among non‐CMC (n = 6653, RR, 1.36; 95% CI, 1.34–1.38). Increased intensive care unit admissions for respiratory illness were also observed (CMC: RR, 1.44; 95% CI, 1.31–1.59; non‐CMC: RR, 2.02; 95% CI, 1.89–2.16). Understanding respiratory surge drivers may provide insights to protect at‐risk children from respiratory morbidity.