Introduction Obstetric brachial plexus injury (OBPI) is partial or total paralysis of the upper limb due to trauma of brachial plexus during delivery, wrist flexion is a common deformity that develops in children with Erb’s Palsy. Kinesio tape (KT) is thin and elastic tape that can be extended up to 120–140% of its original length, this elasticity result in less constraints. KT allows a partial to full range of motion for the applied muscles and joints with different pulling forces to skin, it can be used for both muscle relaxation and to facilitate muscle contraction depending on its. The purpose of the study was to assess the effect of Kinesio tape in stimulation of the extensor muscle wrist contraction in children with Erb’s palsy. Methods This is a hospital-based controlled study conducted in Al-taher marzouq clinic at Khartoum, Sudan in 2015. Thirty children with Erb’s palsy were involved, their age ranged from one month to three years. They were divided into two matched groups (control and study) 15 children each. They evaluated by Active movement scale and Gilbert-Raimondi classification before and after fifteen successive sessions of the treatment program. Control group received selected physical therapy program included the following: Neuromuscular stimulation, for wrist extension for 20 min. Facilitation of muscle contraction for all weak muscle of upper limb. Exceoreceptor such as brushing, brief ice scratch. Proproceptor such as taping, approximation, quick stretch (Strengthen Exercise). Very gentle stretch for subscapularis, prontator and wrist flexor. Graduated active exercise (active assist, active free, active resist). Facilitate of basic hand skill (reaching, grasping, released, bilateral hand use). Weight bearing exercise from prone on hand, side sitting and quadruped positions. While and study group received Kinesio tape in addition to the program given to control group. Results The results of this study revealed statistically significant improvement in both group while the favor improvement in wrist extensor muscles in children with Erb’s palsy in study group (Active movement scale p = 0.006) (Gilbert Raimondi classification p = 0.02). Conclusion Using the Kinesio tape in addition to selected physical therapy program is beneficial therapeutic technique to improve active wrist extension and functional activities in children with Erb’s palsy.