With the number of children suffering from incurable diseases continues to grow every year around the world, the demand for palliative care for children has also increased. However, the research in the field of children palliative care in China is still limited, especially in the psychological aspect. On the basis of the definition and scope of disease of children palliative care, this paper analyzes the psychological changes of children in palliative care among three stages, and proposes countermeasures to improve the psychological state of children. At the same time, children’s psychology will be under great pressure while facing death and illness. Many factors, such as medical process, change in living environment, death education and family, will affect children’s psychological state, resulting in negative emotions such as fear, fear, anxiety, sadness, and depression. Therefore, in children’s palliative care, we should establish localized children’s palliative care services with Chinese characteristics, strengthen the attention to children’s psychological status, provide diversified psychological intervention methods, and give more psychological and social support to children and caregivers, so as to improve children’s psychological status, children’s quality of life and prolong their survival time.