The Living Stage Improvisational Theatre Demonstration Project (Washington, D.C.) conducts weekly workshops to enhance the creative expression and self esteem of orthopedically handicapped children, aged 4 to 8 years. The Living Stage program is designed to demonstrate that methods of improvisational theatre can have a positive impact on parental attitudes. Services to teachers and auxiliary staff are intended to have an impact on classroom teaching methods. Other components of the project are staff development, use of handicapped artists, dissemination and replication activities, and coordination with other agencies. A log lists activities of the demonstration project for the fiscal year 1980-1981. The goals of the project (enhancement of children's creative expression and self esteem) are approached through the interaction of the actors with each child in an intensive 2- to 3-hour session involving music, dramatics, dramatic play, and many nonverbal body movements and expressions. Among results of the project were an increase in the repertoire of communication skills of the handicapped children who could not communicate orally and increased parental displays of love. Although attempts to evaluate the program through paper and pencil tests and observational scales are reported to have been unsuccessful, the panel review strategy supported the effectiveness of the Living Stage in contributing to the lives of the handicapped children on a broad set of dimensions. Other evaluation measures mentioned are case studies, time series analyses, and parent reports. Copies of the 1980-1981 evaluations for Fairhill Elementary School (Fairfax, Virginia) and Sharpe Health School (Washington, D.C.) are included. Appended are letters and press releases. (SW)