This study compared Swedish and British child care policy, educational philosophy, and function and organization of preschools. The activities, language, and group patterns of 559 children in 73 full-time and 42 part-time preschools in Sweden were observed. Questionnaires assessed staff-child ratio, group size, staff working conditions, and demographics in preschools. in the British study, 120 children were observed in 3 types of preschools. Results indicated that adult-led and cognitive activities were more common in Swedish than in British preschools, and that gross motor play was more common in British than in Swedish preschools. Despite differences in staff-child ratio and group sizes, the frequency of dialogue between children and adults was similar in Swedish and British preschools. It is observed that unlike British preschools, Swedish preschools are an important part of the total family welfare system. At present, the function of British preschools is educational, in contrast to Swedish preschools where both child care and education are the goals. However, both countries' educational philosophies emphasizes play and self-initiated activity. It is concluded that national child care policy directly affects educational practices in preschools and indirectly affects children's learning and development. A list of 12 references is included. (BC)