Ambiguous loss and boundary ambiguity experienced by families during the process of placing their child in out-of-home care was described by parents in 20 families raising a child with severe or profound developmental disabilities. In retrospective interviews, parents discussed their experiences before and after placing their child and how they experienced ambiguous loss as they raised a child that was psychologically absent but physically present. Parents faced ambiguities related to the nature and diagnosis of the disability, support services, and placement. A second situation of ambiguous loss was created when the child was placed. Parents experienced two forms of boundary ambiguity (role and membership ambiguity) and ambivalence regarding placement decisions. Research and clinical implications for working with families are presented.