The report summarizes the Preschool Demonstration Project for the Handicapped which served 3- to 5-year-old children with mild handicaps. The project was designed to reduce the influence of handicaps on regular school entrance through structured intervention; integration with nonhandicapped children; and training for teachers, parents, and community staff. Identification of mildly handicapped preschoolers, a major focus of the program, was accomplished by screening of children referred by community agencies and individuals. The services provided to the children focus on development in the following areas: psychomotor skills, language, perception, social/emotional skills, and reasoning. Dissemination and potential replication activities are noted, as are staff development activities and parent education efforts. Evaluation data are cited to indicate that project children made substantially more gains than would be expected without treatment. Extensive appendices include sample lesson plans or home activities, papers on aspects of staff development, and papers on parent/family education. (CL)