The author describes a psychological assessment process for use with the disadvantaged preschooler which involves screening (identification), diagnostic evaluation, instruction related assessment (formative evaluation), evaluation of the results of instruction (summative evaluation), and prediction of readiness. Some generalizations which apply to preschool assessment are: (1) the necessity of using both multiple measures and multiple opportunities for observation, (2) the distinction between capacity and performance and the relevance of applying dynamic assessment strategies, (3) the attention which needs to be paid to adequate sensory functioning, and (4) the positive aspects of assessing the preschool child (such as the child's eagerness for attention). The issue of nondiscriminatory assessment and assessment of minority children is considered in terms of attempts to devise culture free measures. Among the findings relevant to preschool minority groups are that in assessing children from nonEnglish speaking groups, the language dominance within the child and the primary language of the home needs to be known; in assessing the Hispanic child, rapport should be established with the family before attempting work with the child; and in assessing the Native American child, nonverbal measures seem to be the least biases in evaluating ability to learn. It is concluded that nondiscriminatory assessment involves the use of a variety of measures and strategies with the measures suiting the issues to be assessed and with direct learning or dynamic strategies included. (SW)