AbstractKinship for First Nations people is a fundamental, yet complex, element of one's culture, enabling both belonging and relationality, and extending beyond blood family and relations. Kinship is also recognized as important within out‐of‐home care (OOHC) systems, with kinship care being the predominant OOHC placement type in Australia (AIHW, 2021). However, when First Nations children and young people are removed by the state, and placed into OOHC, it is important to interrogate whether kinship placements enable cultural connection and continuity with First Nations ways of understanding Kinship. This article begins by contextualising current OOHC policy and practice in Australia where a westernised and homogenised concept of kinship care is touted as similar to First Nations notions of Kinship. Here, the Aboriginal and Torres Strait Islander Child Placement Principle (ATSICPP) has become oversimplified by equating kinship care with relative care, thus creating ambiguity in care and placements in OOHC, voiding First Nations traditions and ways of understanding Kinship while a young person is in care. This article then reports the findings of qualitative interviews with 37 First Nations and non‐Indigenous people concerning the use of the term ‘Kinship’ in OOHC in New South Wales (NSW), how it is operationalised and how it is understood. Wide‐ranging experiences by participants concerning Kinship within OOHC were evident, thus demonstrating the imperative for a broader understanding of Kinship. This understanding needs to be applied within OOHC in ways that are consistent with First Nations notions of Kinship, as kinship care placements on their own are not enough to keep children connected in culture. The findings from this study show that the term Kinship is applied problematically within OOHC in NSW by equating legal and policy definitions of kinship care with Aboriginal ways of understanding Kinship. Ensuring First Nations traditions, practices and notions of Kinship are applied for First Nations children and young people in OOHC contexts is paramount.