INTRODUCTION: Institutionalization of children and adolescents (NNA) is a frequent measure in the country, though the evidence is conclusive identifying the serious consequences at a general level in children and adolescents under this care regime, especially in evelopmental problems and terms of mental health conditions. In this scenario, nurses from community mental health teams participate in the treatment and rehabilitation of these users. The purpose is to generate knowledge about care management and the challenges related to this context. METHODOLOGY: The population consisted of nurses from Mental Health centers in the South of Chile, selected by means of a non-probabilistic deliberate sampling and snowball technique. This research was authorized by the Valdivia's Ethical-Scientific Committee (Chile). RESULTS: Two meta-categories were obtained: The care management of Mental Health nurses for institutionalized children and adolescents, which includes nursing actions according to the realities of each locality; and the second meta-category is called “Mejor Niñez” residencies Gaps and nodes: Crisis of reparation, which includes accounts of ethical and coordination dilemmas. CONCLUSIONES: There are still flaws regarding the safety and well-being of institutionalized children, which may generate harmful consequences in the reparation process. The incorporation of nurses to the staff of institutional homes is suggested, as well as the use of action protocols for the mental health nursing approach aimed at this population.