Presented is the summary report of a project designed to review the state of the art in basic areas of affective development in the normal and handicapped preschool child. Reviewed are theories of affect and development of specific emotions with particular emphasis on five dimensions (emergence of self, caretaker attachment, adaptation-mastery, self concept, and socialization). The affective development of the handicapped child is discussed in terms of six handicapping conditions: mentally retarded, hearing impaired and deaf, blind and partially seeing, speech impaired, physically handicapped, and emotionally disturbed. Information gaps in the affective area are identified, and suggestions for research and development strategies are proposed. Charts of the available instrumentation and curriculum materials for affective development are also given. (SBH)