Recently researchers have become interested in the well child's coping responses to the stressor of living with an ill sibling. However, few studies to date have shed sufficient light on what children are actually thinking and feeling in an effort to cope. This study used grounded theory to explore children's appraisals of stressful events and to propose a model of which factors exacerbate or decrease the stressful experience. Categories of appraisals were generated relating to themselves and others. Key factors identified as exacerbating the impact of stressors included: poor parental responses; catastrophic thinking; perception of having little control; perception that negative events will persist over time; and repeated, ineffective coping strategies. The impact of stressors was decreased by: children perceiving themselves as able to cope and to have some control, good parental responses, and achieving a balance between thinking of their own needs and thinking of others. A framework to incorporate these findings is proposed.