In the report Care and Prejudice, published by the Children's Rights Director for England, half of the children questioned said being in care made them feel different from other children.
Of the 276 children who replied to the survey, 45 per cent were worried about other people knowing they were in care because they feared being judged, treated differently or bullied.
Children's rights director Roger Morgan said: "Children in care face a lot of challenges and unfortunately this can also include prejudices they encounter from other children, the general public, teachers and some professionals.
"What is needed is more guidance, particularly in schools, to support children in care if needed, but without treating them differently from other children. What is also needed is a more informed attitude by the general public."
Children saw the best thing about care as meeting new people, having good staff or carers and having their own possessions.
The worst elements of care for children were missing their family or being treated differently to others.
Only one in 10 believed that the public thought children in care are the same as other children.
