This individually administered test was designed to assess the speech discrimination ability of hearing-impaired children. The test consists of 25 pages, each of six pictures, and four lists of twenty-five cue words--a picture identification task in which the child points to one of six pictures upon hearing a cue word. It is best administered from the control room of an audiological suite, with an assistant in the test room with the child. Administration of each list usually requires approximately three minutes. Responses to the cues can be scored in three ways, auditory, visual, and combined, according to the condition being tested. To minimize learning effect, a different list should be used for each condition. The matrices of stimulus words present both fine and gross discrimination tasks. The preliminary and final stages in development of the test are described. Test-retest results indicate that all four lists of the final test are highly reliable, with coefficients ranging from .87 to .94. In addition, correlations between list scores and speech reception thresholds suggest that the test reflects valid differences in discrimination ability among hearing-impaired children. Directions for administration, scoring, means and standard deviations, interpretation of the test, and a discussion of its limitations are included. A practice set is provided. The test is suitable for children aged 5-6 (moderate learning loss) and 7-8 (severe loss). The test was developed with support from the U.S. Office of Education and is published under "limited" copyright authorization pursuant to the procedures of the USOE Copyright Guidelines. (PR)