The report describes goals and accomplishments of a project to develop and validate an assessment battery of leisure functioning in handicapped children. The battery was intended to meet the need created by the Education for All Handicapped Children Act and provide data for the assessment of recreation and leisure functioning as part of the student's overall individualized education program. Two versions of the leisure diagnostic battery (LDB) were developed: one for disabled students (9-15 years old) with normal cognitive development and one for 9-15 year olds with educable mental retardation. Project objectives and tasks for the 3 years are detailed, and a summary charts the project's evolution by year. The LDB's conceptualization and development are discussed in terms of its basis in perceived freedom and leisure (with implications for perceived control, competence, and intrinsic motivation); its process of assessment through remediation; and the components, purposes, and domains of the LDB scales. Field test data for reliability and validity of both versions are reported. (CL)