The early years of schooling are both foundational and formative. For many children this is a time of discovery and the first step away from their home environment. Early childhood teachers have a responsibility to encourage the learning and skill development of a highly diverse and often highly emotional cohort. Being away from the nuclear family for the first time and developing new relationships with teachers, peers and other parents adds a unique dimension to the learning environment for early childhood educators. In situation where a child is coming from a home environment that is under duress and associated high levels of stress, substantial challenges to bonding with peers and teachers exist and are often overlooked as part of the learning process. This paper presents an introduction to a research project being conducted to examine the association between environmental stress, the physiological effects of stress through measurements of cortisol and oxytocin levels, the influence of genetic polymorphism in relation to sensitivity to oxytocin and the quality of learning outcomes for students entering the first year of formal schooling. The study will combine empirical evidence in relation to physiological processes in the child participants, collected via analysis of samples of hair, fingernails and mouth swabs, and mouth wash in parents and teachers, and qualitative data analysis techniques from parents and teachers. The study will enhance the understanding of the interrelationships of the factors that influence the quality of outcomes for children as they enter formal schooling for the first time.