The reform of Ukrainian educational sector causes the educational system modernization, including residential institutions, whose activities are regulated by laws and regulations. Optimization functioning the boarding educational institutions at the present stage is possible only on the basis of the strict observance of the norms of Ukrainian legislation. There are such residential institutions as establishments with a 24-hour stay of children, created for the purpose of their residence, development, education, professional orientation, preparation for independent life. The article deals with certain legal documents, including the new Law of Ukraine "About Education". The aim of analysis is determining the essence, typology, directions of residential institutions’ activity. In Ukraine the following types of institutions are functioning: orphanage (provides development, education, training and social adaptation of orphans and children deprived of parental care, pre-school and school age); a comprehensive boarding school (providing education, training and social adaptation of children-orphans and children deprived of parental care); specialized institutions (specialized arts school (boarding school), the boarding school of a sports profile, scientific boarding school (II-III or III degree scientific profile); special schools (schools for children requiring correction of physical and/or mental development), sanatorium schools with a corresponding profile for children in need of prolonged treatment, social rehabilitation schools for children who, according to the court decision, require special conditions of education, educational and rehabilitation centers for children with special educational needs, caused by complicated developmental disorders). These residential institutions of education may be created for public and private funds and funds of territorial communities, operate on one and several levels of general secondary education.