Increasing longevity, decreasing fertility and changes in the family structure have reshaped the roles of family members. In particular, grandparents have gained increasing attention due to their longer overlapping lives with their grandchildren. Despite the wide array of studies investigating the effects of grandparental childcare for grandparents, little is known about the importance of grandparental childcare for grandchildren. We study the effect of grandparental childcare on emotional and behavioural characteristics of grandchildren aged 8-15 years old using data from waves 2-9 of the German Family Panel pairfam (panel analysis of intimate relationships and family dynamics) (N=10,031). Descriptive results show no statistically significant difference in conduct problems, emotional problems, prosocial behaviour, and hyperactivity of children looked after by grandparents as compared to those who are not. We use fixed-effects models on the sample of children not looked after by grandparents at baseline to investigate whether grandparental childcare brings changes in children’s emotional and behavioural characteristics. Preliminary analyses confirm no significant effect of starting to be looked after by grandparents on children’s outcomes. Additional time-varying controls will be added and interaction effects with characteristics of parents, grandparents and context-related will be further investigated. Next steps will also compare different methodological approaches.