Community playgroups have been a feature of Australia’s early childhood education and care landscape for at least forty years. Research in this field has focused on the developmental benefits of playgroup participation for children. However, as a playgroup member interviewed for this study said, that tells only half the story of playgroups’ benefits. The other half – and the focus of this report – describes the benefits of participation for parents and carers, and the spillovers or wider social value that this generates. Drawing on qualitative and quantitative data, this research contributes to knowledge and advocacy gaps by critically appraising:• the contribution of playgroups to the landscape of social care• their adaptive response to changing social and economic trends• their role in developing social capital and acting as a catalyst for parents and carers to engage with other social settings, and• their contribution to the informal or non-market economy.The findings of this study emphasise the point developed by social capital theorists that relationships matter. However, the report also reveals some structural weaknesses and constraints that may impede playgroup participation and the contribution of playgroups to community capacity building. These include:• constraints around the finances, leadership and training support of playgroups• variable participation across cultural, linguistic and faith groups• gaps in information provision about playgroups.