To determine the effects of teacher training on day caregivers' instructional methods and to examine children's learning behaviors during training, a study was conducted of 5 African-American caregivers and 60 children from low income families in an urban day care center. The caregivers participated over a 2-year period in the W. E. Think training program, which emphasizes developmentally appropriate practices and concrete experiences for children and involved 2-way feedback, active participation by caregivers as trainers, individual conferences, and mentoring. Qualitative data for the study were collected via participant observations, interviews, and videotapes, while quantitative data on children's cognitive performance were gathered 1 year into the study and again at the end of the project. With respect to caregiver outcomes, the training resulted in improved lesson planning, the use of child-centered instructional strategies, and the use of materials and activities that conformed more to developmentally appropriate practices than before the training. Outcomes for the children included improved verbal and social interactions, cooperation, motivation, independence, and self-esteem. In addition, significant improvements were found in children's cognitive development. (Recommendations for teacher training and 42 references are included.) (BCY)