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I don't know the best approach for this, and don't be offended by my comparison, but my sheltie had a bit of jealousy when Dixie came home with us. He is the type of dog that follows me everwhere, all day long, and now Dixie is there too. Anyway the way i handled it was to have the three of us sit together and share Dixie's puppy kibble. Worked like a charm. Her food is very different and he knows it it hers [his is low fat and much less exciting I guess] I would try to have the children give him special treats for allowing contact on your lap. it might just start out as them feeding goodies while you hold and then work up to petting. Just a novice guess. Good luck.