The coronavirus disease (COVID-19) pandemic had a global impact on family social and economic well-being. Individuals and families sought alternative living arrangements as a result of the financial crisis, health implications, and housing insecurity, with many joining multigenerational households. However, it is unknown how multigenerational family life affects children's well-being. Therefore, this qualitative study explored risks and resilience-building opportunities for children's psychological and social well-being in resource-constrained multigenerational households during the COVID-19 pandemic in South Africa. Five multigenerational families were selected through snowball sampling and case design. The three generations of participants were grandparents (n = 5), parents (n = 7), and children (n = 4). Data were gathered through a questionnaire and interviews. The study received institutional ethics approval. After thematic analysis, two themes and six sub-themes were identified. Risks were related to interpersonal conflict, family collective fear of COVID-19, and children's multiple other fears. Opportunities were identified as academic support, shared responsibilities, life skills and values acquisition, and family cohesion. Results demonstrated the potential risks and resilience-building opportunities multigenerational households present for children's psychosocial well-being. Multisystemic influences in a multigenerational household contribute to children's adjustment. These outcomes necessitate systemic school psychology interventions. Longitudinal studies are recommended to explore child well-being trends in multigenerational households in varying socioeconomic contexts.