Differently abled children may feel sometimes confused, insecurity, anxious, disoriented, isolated, worried, rigid and less happy. These emotions fluctuate and subject to turbulent and unpredictable behavior. Stress therapy can lead to a reduction in stress, anxiety, better sleep, a strong system, improved relationships, better academic results, improved performance at work and even a better memory. The present study examines the stress and anxiety levels among the differently abled children in the selected study area and it analyzes the effectiveness of stress therapy on the anxiety levels among the differently abled children. The study further evaluates the association between the demographic variables and the anxiety level among the differently abled children.The present research study adopts Descriptive Research Design. Both primary and secondary data were utilized for drawing conclusions from the study. Interview Schedule method was employed to extract the primary data from the selected sample respondents. The sampling area selected for the study was Krishna District of Andhra Pradesh. The sample size comprises 140 sample respondents. The nature of the sample was that of the physically challenged children with different disabilities studying at different special schools in the study area. Statistical tools like percentages, mean, standard deviation, t-test and chi-square test were applied in order to draw the inferences from the study data. The study concludes that there exists a significant difference between the pre and post stress therapy anxiety levels among the differently abled children and there exists a significant association between the demographic variables and the anxiety levels of the differently abled children. The study further concludes that the stress therapy and other practices of stress management are very helpful for reducing the anxiety and stress levels among the differently abled children especially in the perspectives of academic aspects.