The National Education Policy (NEP) 2020 emphasizes inclusive education and holistic development, recognizing the vital role of physical activity in fostering psychological well-being among children with special needs. This study investigates the impact of structured physical activity interventions on the self-esteem of children with learning disabilities (CWSN), employing a quantitative quasi-experimental design. A total of 60 participants, aged 9 to 12 years, were selected from special and inclusive schools, with 30 assigned to an experimental group receiving an 8-week structured physical activity program and 30 to a control group with no intervention. The program included motor skill training, team games, and cooperative physical tasks tailored to the needs of children with learning disabilities. Pre- and post-intervention self-esteem levels were measured using a standardized tool (Rosenberg Self-Esteem Scale, modified for CWSN). Data were analyzed using paired and independent samples t-tests. Results indicated a statistically significant improvement in self-esteem among the experimental group (p < 0.01) compared to the control group, demonstrating the positive effects of physical activity in enhancing self-worth and confidence among CWSN. The findings underscore the need for integrating structured physical activity programs within the school curriculum, as advocated by NEP 2020, to support the psychological and social development of children with learning disabilities. This study contributes to the growing body of literature supporting evidence-based interventions for inclusive education and calls for policy-level support to implement such practices nationwide.