The National Science Foundation (NSF) provides grants through its program divisions, which represent the various disciplines and fields of science and engineering. This report provides a synopsis of NSF grant awards and activities for 1986. The first two sections of the document highlight some of the current areas of NSF sponsored research and development, along with some crucial issues to be considered in the future. The next chapter focuses on: (1) centers and instrumentation; (2) meeting the future personnel needs of science and engineering; (3) precollege education and associated personnel issues; (4) international science and engineering; (5) polar programs; and (6) natural disasters. Subsequent sections of the book describe NSF award recipients, introduce various NSF employees who have responsibilities for specific program areas, and outline NSF operations and its organizational structure. Appendices include a listing of NSF staff and National Science Board members, financial and patent reports for fiscal year 1986, and the membership of NSF advisory committees. (TW)