The purpose of this paper is to highlight the determinants of malnutrition in children (under 5 years) in urban and rural areas of India. The ultimate objective is to frame policy proposals for children’s nutritional welfare. In this empirical study, logit model is applied to 9,381 observations of urban and 18,418 of rural areas. The composite index of anthropometric failure is constructed to use it as an indicator of malnutrition. The results revealed that probability for anthropometric failure increases by age, birth-order and duration of breastfeeding. The birth-interval, delivery of the child in hospital, wealth index of the household, mother’s BMI and mother’s education turned out to be negatively affecting children’s malnutrition in both urban and rural areas. Gender of the child has no significant effect on malnutrition in both urban and rural communities. From the policy perspective enlarging the birth-interval through family planning programs and squeezing the duration of breastfeeding by giving supplement food at subsidized rates may contribute to enhance children’s nutritional status. For the long-run socioeconomic status of the household and BMI of mothers require attention of policy makers. To break the intergenerational cycle of malnutrition, the nutritional status of today’s girls in the age of adolescent is recommended to be improved. The findings of study may support academicians, policy makers and social activists for human development programs in India.