Some five thousand children and young people are in residential and foster care in Scotland. Many experience poor outcomes and concern about the quality of care has led to a number of government initiatives including the registration of care services and the social care workforce. Children and young people in state care experience a high level of mental health problems. Mental health services, however, have not served this vulnerable group well. The issue of the mental health of children and young people is now high on the government's agenda. A national needs assessment has set out an important agenda for the development of services. In addition, a number of innovative projects have focused on meeting the mental health needs of children and young people in state care. It is important that these developments lead to integrated and flexible mental health services in order to improve outcomes and well-being of children and young people in state care in Scotland