This article sheds light on the waiting period experienced by asylum‐seeking children in Austria. We argue that this period can be defined as a ‘phase of liminality’ in which ‘precarity’ of asylum seekers is produced. The article analyses how children experience institutional settings that produce precarity in relation to their well‐being. The aim is to contribute to a sound understanding of children's experiences while waiting for an asylum decision and to a child‐centred perspective on children that focuses on their needs, wishes and agency. The article draws on 27 interviews with asylum‐seeking children living in a basic services accommodation in Vienna, conducted in 2020 and 2021. The findings demonstrate the importance of listening to asylum‐seeking children to support their well‐being during this phase of liminality and implementing child‐centred asylum policies that are responsive to children's well‐being.