Children s spirituality has been disputed since the publication of South Africa s policy on Religion and Education in 2003 (Roux, 2006:152). This controversial topic, concerning the previous dispensation s religious education being substituted by the multi-religious subject of Religion Education (RE), begs the question of whether the change in policy has been well-perceived and adequately implemented by Foundation Phase (FP) teachers. In addition, it solicits a query on whether spirituality has justly been included as a central part of holistic development (Department of Basic Education, 2011:8) in the learning area of Life Skills. The main aim of this study is to investigate how teachers implement the policy of RE and to examine their perceptions of the subject. It furthermore aims at studying the theoretical insights concerning the FP child s spiritual development. Child development theories of Fowler (1981), Piaget (1969 ), Erikson (1982) and Kohlberg as well as the holistic models of Hettler (1976) and Winiarski (1997) provided a basis for the theoretical investigation. A multiple case study undertaken in four schools with varied contextual backgrounds has found that teachers had positive perceptions concerning RE even though they faced challenges with the implementation of the subject. In addition, it has been found that teachers still practise faith-based exercises in the classroom to improvise for the lack of spiritual development they observe in FP learners. The findings further indicate that teachers draw correlations between negative learner-behaviour and the non-provision of religious education in schools. This current investigation contributes towards greater insights regarding teachers perceptions and implementation challenges of RE; and it reveals a gap with regard to spiritual growth within the holistic foundation that Life Skills should provide the FP learner. Careful evaluation on the part of policy makers and the Department of Education is desired, especially on issues concerning teacher training, guidelines on the subject of RE and finally the neglect of the child s spirituality in South African schools.