One of a series of booklets designed for use in an Open University Course on the education of handicapped students in Great Britain, the booklet examines the application of psychology to special education. Origins of educational psychology are traced, as are the beginnings of psychology's relationship with special education. The author asserts that psychology has been influenced by political factors within local districts as well as by predominating theories such as psychoanalysis. Applications of two major branches of psychology (behavior modification and child development) are considered, with emphasis on the problems of applying these ideas to teaching. Examples of both principles at work are given, and the influences of each upon special education practice are noted. The importance of teaching skills in the natural setting is stressed. Activities and readings are suggested throughout. (CL)