Literature is reviewed on the effects on families of having a handicapped child, and a model of the interrelationship of effects is proposed. Topics covered in the discussion include the following: the meaning invested in handicap (labeling, the meaning to the parents, and the effects on the handicapped family member); caring for a handicapped child; and the changing nature of living with a handicapped child. The effects of the initial discovery and its stress on parents are examined, as well as the effects on the parents, the marriage, and the family's economic situation of life with a handicapped family member. Social life and leisure aspects are considered in a section on the effects on the family's relationship to the outside community. Sibling reactions and adjustments are noted. Factors such as birth order, sex, family size, and socioeconomic status which influence family adjustment are discussed. A final section suggests differences between families with normal and those with handicapped children, and between families of the mentally and the physically handicapped. (CL)