Effects of family-oriented early intervention on the home environment were explored in a 6-month study of 23 handicapped children (ages birth to 5) and their families, who participated as members of an experimental or control group. The Home Observation for Measurement of the Environment (HOME) Inventory was administered to evaluate differences in home environment variables before and after systematic family-oriented intervention. Intervention provided to the experimental group included transdisciplinary assessment and development of an individualized education program (IEP); free-play observation of parent and child; assessment of family needs and development of an individualized family plan; sessions with a family therapist; and optional participation in parent and sibling groups. Families carried out play and learning activities at home between weekly intervention visits. As measured by HOME Inventory, maternal involvement, availability of play materials, and overall home environment ratings significantly increased for the experimental group. Scores for the comparison group did not change over the 6-month period. (Author/JW)