The ability of language impaired children to remember and retell two stories within their lexical and syntactic grasp was investigated with 12 language handicapped and 12 normal children (7 to 9 years old). An audiotape of the child's retelling of the stories was analyzed in terms of accurate recall, plausible information added during recall, errors in recall, the organization of recall, and the ordering of story information. Results indicated that the language impaired children exhibited recall deficits in the amount of information recalled when compared to the normal children. They did not differ from normal children in the amount of plausible information added, the number of errors in recall, the organization of their recall, or in the accurate ordering of story information. An additional test of their ability to process single sentences showed that the language impaired children had poorer short term recall than normal children 2 years younger. A sample story, statistical data, and graphs are appended. (DB)