The practice and interpretation of intelligence testing of educable retarded and learning disabled children is examined in this report. The current and future state of intelligence testing is discussed in terms of its predictive, diagnostic, and remedial functions. The first section places a consideration of individual testing formats within a framework of L. S. Vygotsky's theory of potential development and the underlying assumptions of that theory concerning task analysis and transfer of training. The second section considers the social nature of the testing situation and the degree of contextual support provided for the learner. The final section deals with U. Neisser's distinction between academic intelligence and everyday thinking, with particular reference to the life adjustment of mildly retarded citizens. (Author)