This pilot study explores the effectiveness of interactive music therapy in reducing anxiety and increasing the comfort of hospitalised children with cancer. Pre- and post-music therapy measures were obtained from 65 children and parents. The measures consisted of children’s ratings of mood using schematic faces, parental ratings of the child’s play performance, and satisfaction questionnaires completed by parents, children and staff. There was a significant improvement in children’s ratings of their feelings from pre- to post-music therapy. Parents perceived an improved play performance after music therapy in pre-schoolers and adolescents but not in school-aged children. Qualitative analyses of children’s and parents’ comments suggested a positive impact of music therapy on child well-being.