In 1937, a new chapter opened in the history of the building when Fife Children's Home was set up at Aithernie by Miss Margaret Paxton of Homelands. The house was rented from David Russell who still owned it. The first of its kind in Scotland, the home provided accommodation for young children whose parents could not look after them. The children who came to live there spent as much time as possible outdoors in the grounds, even often eating meals outside. Miss Paxton's sister Jessie had by this time been running a nursery in Methil for around eighteen months (still named the Paxton Nursery today). The Courier of 3 September 1937 reported that the sisters had "endeared themselves to many, owing to their untiring energy in the cause of children in distressed and overcrowded areas of Fife."
In the next post - Aithernie undergoes a name change and becomes a hotel.