A review of the state of the art of computer applications in foreign language instruction begins with a discussion of the advantages and disadvantages of this method of instruction, its history of use, use of natural language, interaction and communication, and types of computer assisted instruction (CAI). A section examining the relationship between language teaching goals and the practical steps in using the computer as a teaching tool uses as an example the teaching of vocabulary, and traces the development of a program from establishment of vocabulary files through the choice, classification, and presentation of words to their practice. In a subsequent section, applications for skill development in grammar, writing, reading, speaking, listening, and cultural education are analyzed. A chapter on lesson design looks at techniques of presentation, recordkeeping, and the use of branching. Management tools such as text editors, item banks, and applications for testing, placement, and grading are noted in the following chapter. In a chapter concerning avenues of access to CAI, aspects and issues of hardware, programming, authoring systems, software packages, and software evaluation are outlined. A concluding section on directions in CAI reviews progress in evaluating program effectiveness and the status of research and development efforts. An indexed and annotated bibliography and a glossary of CAI and computer terms are appended. (MSE)