This literature review on the importance of play in the development of children focuses on play differences of exceptional children, methods of observing and assessing play, play interventions, the use of toys and playthings, the role of nonhandicapped peers in play, the physical environment for play, and the role of adults. The paper concludes that play can not only be used to gain assessment information but can also be used to teach and reinforce new skills. Several transparency masters are appended to the paper, including observation forms and information on definitions of play, benefits of play, play skills of disabled children, considerations for direct instruction in play, levels and categories of play, play interventions, characteristics of playthings, arrangement of the physical environment, and levels of adult involvement. (Contains 36 references.) (JDD)