Children are the most important asset for the society's future. They develop into maturity depending upon how they are moulded by their families, society, and the environment. They are very sensitive and could easily get influenced or affected by the slightest change. Therefore it is important to maintain a normal set-up for them under all of their routine and disturbed mental and physical conditions.Sickness and hospitals are one thing that affect a child's psychology. Children dread to get into the harsh technological environments of today's medical environments. Hospitals are constantly evolving to keep pace with the latest medical technologies. Additions or refurbishments or a totally new set-up usually focuses on the technological requirements rather than the human element of such an undertaking. The Riley Hospital for Children in Indianapolis presents an architectural opportunity to incorporate psychology of the environment into the design and construction of a new outpatient unit. By balancing the technological requirements with the physical and pschological needs of a child patient, one can create a healing environment more conducive to a rapid recovery. This thesis explores one of the possibilities of creating such an environment.