The advantages of a knowledge-based computer program that creates exercises for language instruction rather than presenting pre-stored materials are discussed, and one such system, ILIAD, is described. Designed to address a broad range of language learning needs, this system can be used by people learning English as a second language and by children or adults with language-delaying handicaps, such as deafness, as well as by native English speakers. The generality and power of the approach are stressed, with emphasis on the computer's ability to meet individual student needs, and its applicability to a wider variety of tutorial purposes and material than traditional computer-assisted instruction systems. Specific examples of several ILIAD tutorials demonstrate the power of a generative system with user-specifiable options, and approaches to computer-assisted language instruction in both traditional and generative systems are presented in tabular form for comparison. Developed on a large computer (InterLisp on a DEC System 20), ILIAD is being re-implemented for microcomputer (UCSD-Pascal on Apple and Cromemco systems). Appendices include sample base and surface structures, as well as sample sentences generated by ILIAD. Sixteen references are listed. (LMM)