This paper examines some of the critical needs in early childhood education and suggests ways in which the National Laboratory on Early Childhood Education can contribute to filling those needs. The age, race, socioeconomic status and residence of children enrolled in preschool programs nationwide are examined, and it is concluded that many more children, particularly the disadvantaged, are in need of such programs. The role of state and federal governments in supplying day care and early education is explored. Persistent problems reviewed include inadequate knowledge of processes underlying development, poor program definition and specification, inadequate staff training, lack of appropriate objectives, inadequate evaluation and instrumentation and lack of federal support. It is posited that the Laboratory must have a direct impact on practice by developing and demonstrating sound comprehensive early childhood educational models based on an understanding of the underlying processes of early development. Presented is a proposal for the functional and administrative organization of the Laboratory to achieve this goal. Major functions outlined include research; program planning and evaluation; program development, demonstration and installation; and resource production. (Author/SB)