This study was undertaken to assess the challenges faced by families in caring for the rising number of orphans and coping strategies they use to mitigate the challenges. Using a combination of quantitative and qualitative techniques, the study was conducted among rural caretakers in Bushenyi district. Findings from the study were gathered through semi-structured interviews with 50 caretakers and 52 orphans as well as in-depth interviews with nine community leaders including eight local council leaders and the District Probation and Welfare Officer. The findings revealed that even in the face of severe socio-economic challenges, there is continued willingness by families to absorb orphans. In fact, some caretakers, particularly grandparents derive satisfaction from offering the care. However, in spite of this willingness, the study found out that orphan care in families is fraught with several challenges whose scale and complexity often exceed the capacity of the families to effectively mitigate. Consequently, most of the needs of orphans are either partially addressed or not addressed at all.