A number of studies to this day have examined the role of maternal childhood trauma in parenting styles, mental health, and child attachment patterns; however, there are limited data on parenting of mothers who were raised in institutional care (IC) and involved in the child welfare system. The current review focuses on maternal history of institutionalization and foster care placement and its impact on parenting and child development. Studies show that the history of maternal trauma such as maltreatment, which is often linked to an orphan status, can be transferred to children through maladaptive parenting strategies, evoking a cycle of cross-generational maltreatment. Mothers raised in institutions show an early sexual debut that is often resulting in unplanned pregnancies, and are lacking competence in taking care of their own children. Directions for future research involving mothers with a history of IC are discussed.