Children experience toxic stress if there is pronounced activation of their stress-response systems, in situations in which they do not have stable caregiving. Due to their exposure to multiple poverty-related risks, African American children may be more susceptible to exposure to toxic stress. Toxic stress affects young children's brain and neurophysiologic functioning, which leads to a wide range of deleterious health, developmental, and mental health outcomes. Given the benefits of early care and education (ECE) for African American young children, ECE may represent a compensating experience for this group of children, and promote their positive development. [For the complete volume, "African American Children in Early Childhood Education: Making the Case for Policy Investments in Families, Schools, and Communities. Advances in Race and Ethnicity in Education. Volume 5," see ED663675.]