Applied performance tests (APTs) are defined as tests designed to measure performance, in an actual or simulated setting, of tasks significant to a student's life outside the school or significant to adult life. A number of examples are presented to illustrate which skills may be classified as applied performance (such as file a tax return or drive a car safely), as opposed to non-applied performance skills (decode new words, or demonstrate knowledge of driving rules). These non-applied skills, it is noted, are often prerequisites of applied performance; one must learn the rules of the road before being able to drive a car safely. The essential characteristic of APTs is systematic measurement of observable behaviors described in terms of process, product or both in real or simulated settings where previously learned skills and concepts can be applied in problem situations derived from the goals of the institution or sponsor. APTs are briefly contrasted with normative, criterion-referenced, and mastery tests. If is suggested that APTs can be useful for selection, certification, diagnosis, and classification; that they may increase student motivation; that they reinforce experiential learning; and that they may help improve teacher-community relationships. (GDC)