This ESEA Title III report describes fault tree analysis and assesses its applicability to education. Fault tree analysis is an operations research tool which is designed to increase the probability of success in any system by analyzing the most likely modes of failure that could occur. A graphic portrayal, which has the form of a tree, is constructed by a series of logical steps, showing at each stage precisely how a given failure can occur. Mathematical formulas based on the probability of occurrence of individual events are applied to determine the critical path leading to the top undesired event. Among the many advantages of this technique is its usefulness as a device for evaluation of processes as opposed to the more common evaluation of products. The document includes a history of fault tree analysis, principles of fault tree construction, a prototype fault tree with analysis, and evaluation of fault tree analysis as an educational research and planning technique. Although many technical problems are yet to be solved, fault tree analysis holds much promise for application to education. [Not available in hard copy due to marginal liability of original document.] (TT)