Achievement and intelligence tests have been criticized for their adverse effects on the mental health and intellectual development of children. The fault is not with the testing, but with the instructional program. Reforms in testing must be accomplished as part of a revolution in the total instructional program encompassing: (1) a shift from a fact-laden to an idea-centered curriculum in all subject areas for all students, (2) an emphasis on the "process goals of education", (3) mastery of the subject matter by all students, and (4) individualized instruction tailored to the needs and capabilities of each student. Needed changes in testing include developing instruments able to measure learning outcomes of new curriculum stressing theory and method of inquiry. Different types of subtests measuring the specific learning outcomes of units can be used to individualize instruction. Developments in diagnostic testing are needed to provide the teacher with test approaches and tools for measuring student characteristics as learners in relation to different learning tasks. Finally, a computer based information system is needed to make information accessible on each student. Tests concentrating on specific, objective material and limited to paper and pencil assessment are to be avoided. (CG)