This handbook is a guide to a compensatory language program designed for young, Australian, aboriginal children during their first year at school. It is the result of recent research which shows that reading retardation characteristic of aboriginal children may well be associated with the fact that their linguistic system differs from that in the reading texts. The major aim of the program is to help children develop facility in the use of the language structures of standard English. The handbook discusses the role of language in development, aims of the program, guidelines, and main aspects. The program is designed to occupy the entire school day for the whole school year. It is concerned with four basic problems: oral language patterns of standard English; reading and writing skills; perceptual skills (listening, looking, touching); problem solving and critical thinking. These considerations are interwoven through seven learning units or blocks of activities and suggested plans. Details on the first three units are provided in the handbook along with suggested daily programs, materials, and methods. (VM)