The 3-section manual gives educators and community people information about establishing and conducting a preschool program that promotes the intellectual and cultural growth of Indian children. Section I discusses five aspects of establishing a preschool: purchasing equipment and designing a room layout; setting learning goals and objectives and developing lesson plans to teach each competency; recruiting and enrolling students; orienting parents; and providing transportation. Section II explains how to conduct the program including: organizing classroom instruction; selecting and developing Native American learning materials; evaluating student changes; keeping program records; and sponsoring special events for preschool children and their families. Section III explains how to identify and use community services and resources for young children and how to conduct health-related activities. Suggestions and examples from the Daybreak Star Preschool, metropolitan Seattle's only early childhood education program designed for Indian children, illustrate the information in all three sections. The manual has three appendices: an annotated listing of books available from Daybreak Star Press; a listing of learning materials for young children, noting author, publisher, and tribe for which the material is pertinent; and a set of sample administrative forms from the Daybreak school. (SB)