The booklet provides an overview of the characteristics of young children with handicapping conditions and the components of effective preschool programs for this population. It then discusses the complex issues and implications of recent legislation (Public Law 99-457, Education of the Handicapped Amendments--1986) mandating preschool programs for the handicapped. The first section lists arguments for and against the provision of preschool programs to handicapped children. The next section looks at eligibility for such programs including identification procedures and issues in assessment. Profiles of preschool programs for handicapped children are given next showing a variety of administrative arrangements, staffing plans, and curriculum models. The essential components of preschool programs are then identified and include: integrated programming, transdisciplinary teamwork, parent participation, interagency cooperation, and transition planning. (DB)