Twenty-one families participated as members of experimental or control groups in a study which investigated the effects of family-oriented intervention on the stress level of families with young handicapped children (average age 2 years) whose impairments were primarily developmental delay or cerebral palsy. Parents completed the Parenting Stress Index (PSI) upon entrance to the program and again after 6 months. Systematic family-oriented intervention provided to the experimental group included transdisciplinary assessment, development of an individualized education program for each child, free-play observation of parent and child, assessment of family needs, an individualized family plan, sessions with a family therapist, crisis counseling as needed, and optional participation in parent and sibling groups. Post-intervention PSI scores for the experimental group indicated a significant decrease in stress related to the child's adaptation and demandingness, while parental perception of child mood was significantly improved. PSI scores for the comparison group did not change over the 6-month period. (Author/JW)