A cloze informal reading inventory (CIRI) was constructed from a basal reading series and administered to all 120 second through sixth grade students at a university laboratory school to determine if CIRI was as effective as a traditional informal reading inventory (IRI). All students scoring below second and above eighth grade on the IRI were excluded from the study, resulting in a sample of 68 students with average WISC scores of 115 to 120. No differences were found between mean scores for the IRI and CIRI. Age was positively correlated with scores on the IRI and the CIRI; current reading placement by teachers was significantly correlated to both the IRI and the CIRI; and intelligence was significantly correlated with reading achievement, IRI scores, and CIRI scores. Reading achievement as measured by a standardized test was significantly correlated with both IRI and CIRI scores, though both correlations were low. The CIRI appeared to be a much more efficient placement tool in a classroom setting and to be just as accurate as the IRI. (RL)