To determine if patterns of listening and reading skill development in mildly handicapped children differed markedly from those of non-handicapped children, 180 learning disabled (LD), educable mentally retarded (EMR), and nonhandicapped (NH) children from rural and urban settings were given the Durell Listening-Reading Series. A multivariate analysis of variance was conducted to determine the developmental patterns of listening and reading skills as a function of label and residence. Findings supported the contention that EMR and LD Ss differed in reading and listening performance as indicated by scores on the Durrell Listening-Reading Series. LD scored higher than EMR Ss on listening scores, although both groups scored significantly lower than the NH Ss. In reading, LD Ss' scores were more similar to EMR Ss than to the NH Ss. Data suggested that aural presentations may be preferable to visual ones for LD and EMR students. There was no relationship between Ss' place of residence and listening and reading skill. (CL)