Refugee families in Australia generally have a dual challenge--dealing with past traumatic experiences while facing the struggles of integrating with a new and unfamiliar society. For children and their families who have experienced war-related trauma and disruption, the resettlement process is being referred to as "secondary trauma" to highlight the problems refugees face under these circumstances (Fazel & Stein, 2002). This paper discusses the possible long-term effects of trauma and reports on a small study that investigated whether or not a supported playgroup used by refugee families in western Sydney could be considered a protective environment. Emerging evidence showed that, while families reported difficulties associated with resettlement, they experienced ongoing emotional support within the playgroup and developed new social networks which resulted in reduced levels of stress and anxiety. Children showed improvements in the home and playgroup environments which highlighted the significant role the group played in facilitating resilience. (Contains 1 table.)