"A téren a gyerekek mindenféle ruhákban játszanak."

Translation: On the square, the children are playing in all kinds of clothing.

[Krisbaudi]

My answer was not accepted: The children are playing on the square in all kinds of clothes.

[RyagonIV]

That should be okay.

[pYewR9MH]

It is still not accepted

[Arcaeca]

"Children wearing all kinds of clothes are playing on the square" is much more natural IMO

[aplaice]

Just to make sure: this means that the children are wearing all kinds of clothes, not that there's a pile of all kinds of clothes and the children play in it?

[RyagonIV]

It can mean either. :)

[aplaice]

Ah, OK. Thanks for the reply!

[BlaHahn]

What is the difference between on the square, and in the square?

[RyagonIV]

"In the square" is grammatically correct in English in this circumstance, referring to the place in a town. "On the square" refers to something that's on a geometric shape.