One of the most creative, active, purposeful and successful efforts of the Federal Theatre Project (FTP), active from 1935 to 1939, was the Children's Theatre. Plays for production were selected on the basis of educational and cultural value, with special attention on sufficient realism to help children's awareness of self and place in the world. Plays (such as "Alice in Wonderland,""Aladdin,""Hansel and Gretel,""Babes in Toyland,""Mother Goose Goes to Town,""The Emperor's New Clothes,""Rip Van Wrinkle" and "Adventures of Pinocchio") were produced across the nation, providing an opportunity for millions of children in America to attend the theater. Theatrical elements of music, lights, and sound effects were emphasized; costumes were colorful, significant, and specific; characters were generally stereotypes and performed by adults. Additionally, the Federal Theatre successfully explored the therapeutic values of theater in the treatment of "backward and mentally dormant" children and children with speech disorders. The Community Drama Unit of the FTP also successfully taught children through theatrical experience as opposed through textbooks only. The greatest achievement, however, was creating a whole new appreciative audience of children, a new generation eager for the exciting adventure of live theater. It remains a valuable source of information for people working in contemporary children's theater. (Information about two recently published works on the FTP and its production materials is included.) (KEH)