Caregiver‐child interaction and social participation were compared in community‐based day care centers and group day care homes. Group day care homes spent more time in structured activity and had more large group contact than centers. Children in centers spent more time in transition and solitary play. There were several differences between centers and day homes within behavior settings. During structured periods, adult‐child interaction and social participation was of higher quality in day care homes. The adult‐child interaction in both types of child care tended to be neutral in affective tone.