Since 2005, Muskaan started working with younger children aged 3-6 in basti-based balwadis. This began as an experiment, where story telling and singing activities were conducted with young children in 4 bastis. Balwadi attendance resulted in marked improvement in the children's attention span, attendance, regularity and growth when they began school later. Realizing the great potential of this initiative, Muskaan now has integrated Balwadis in its programmes. Currently there are six fully functional balwadis with an enrolment of about 200 children. Balwadis run for three hours between 11:00am and 2:00pm. During the session, a nutritional supplement in the form of a small meal is also distributed.

The main aim of the balwadis is to facilitate early childhood growth and development by providing an encouraging and enjoyable learning environment for the children through various activities. These include storytelling, play acting, sorting materials, puzzles, drawing, games and physical exercises, etc. Activities are carefully selected with a view to facilitating the development of language and expression, logic building, hand control, independence and physical development among the children.

Mothers of young children are encouraged to visit the balwadis and discuss their children's growth and progress. This helps to build and cement relationships with the mothers and develops the habit of focusing on a child’s educational development. The women feel their children enjoy spending their time at the balwadis and the activities help to build their confidence, communication skills, creativity and capacities. Mothers have also expressed that their children become more responsive, attentive and expressive. Further, the women also feel that they can use the time spent by the children in balwadis to do their own work or even to take a breather during their otherwise grueling daily schedule of household work, looking after the children and income generating activities.