A model for habilitating mentally retarded adolescent offenders is described. Discussion of historical background indicates a lack of programs for this population. A data-based profile of the population covers range of developmental delay, adaptive behavior scores, social skill development, academic achievement, arrest history, racial composition, and incidence of emotional disturbance. The need for training the adolescents to re-enter the community is emphasized, and specific treatment objectives toward that end are enumerated for aspects of behavioral excesses, deficits, and family involvement. Adaptation of the original unsuccessful treatment program in a group home included environmental engineering to reflect a more controlled environment while maintaining a token economy/timeout approach. Behavior improvements are reviewed, and floor plans showing design features are provided. Additional features described include transition through the program, setting (institution vs. community), outcome indices (such as treatment duration, recidivism, rates of aggression and non-compliance), vocational orientation, therapy, recreation, and family involvement. Among appended information are descriptions of programs designed to reduce antisocial behavior and generalize adaptive behavior. (CL)