IN THIS FIVE YEAR DEMONSTRATION PROJECT, EMOTIONALLY DISTURBED ADULTS AND ADOLESCENTS RECEIVED TREATMENT AT A DAY CARE REHABILITATION CENTER SPONSORED BY THE RHODE ISLAND DIVISION OF VOCATIONAL REHABILITATION (DVR) LOCATED IN A PRIVATE PSYCHIATRIC HOSPITAL (BUTLER HOSPITAL). THE MAJOR TREATMENT GOALS WERE PRESERVATION AND RESTORATION OF INTERPERSONAL RELATIONSHIPS IN AN ENVIRONMENT OF LITTLE STRUCTURE, FREE CHOICE, MANY ACTIVITIES, COMFORT, AND SECURITY WHERE INDIVIDUAL AND GROUP THERAPY WERE AVAILABLE. PATIENT SELECTION, ADMISSION CRITERIA, AND REFERRAL PROCEDURES ARE DISCUSSED. DAY-CARE STAFF DESCRIPTIONS INCLUDE THE HOSPITAL SUPERINTENDENT, DIRECTOR, ASSISTANT DIRECTOR, HOME ECONOMIST, PAINT SHOP SUPERVISOR, BOOKBINDER, WOODWORKING INSTRUCTOR, SCHOOL TEACHER, HOMEWORKER, SOCIAL WORKER, PSYCHOLOGIST, DVR COORDINATOR, AND COUNSELORS. THE INSERVICE TRAINING PROGRAM FOR REHABILITATION COUNSELORS IS DESCRIBED. THE PHILOSOPHY OF DAY CARE, THE EVOLUTION OF ITS THEORETICAL FRAMEWORK, AND THE ATTITUDES OF THE STAFF TOWARD THE PROGRAM AT THIS CENTER ARE DISCUSSED. A TYPICAL DAY OF A PATIENT AND BRIEF CASE STUDIES OF 20 PATIENTS ARE PRESENTED. (JK)