Abstract Preschools are the formal basic education institution children attend to. They play a significant role in the process of socialization, personality, development, academic achievements, and social feasibility of the children who would become leaders and good citizens in future. The ability and creativity of the children are exposed and developed in the early childhood education. They, in the preschools, prepare themselves to face the challenges of the changing world ahead them. Now the preschools faces a lot of challenges and impediments such as inefficiency of preschool teachers, location of uniform system, no standard syllabus, improper teacher deployment, lack of awareness among parents, and earning purpose. However, these challenges should be met by making the necessary reforms in the system. Of them, the changes in policy level is quite necessary. The proper training for the teachers, and proper assessment system are also recommended. In reshaping these schools effective, the concept of effective preschool is the need of the hour and need to undergo drastic changes to cater to the need of present global challenges. The schools should be set up under the principal of effective and child friendly schools to supply the students for formal learning in these schools.