This progress report describes the development and field testing of the School Mastery of Reading Test (SMRT). The SMRT was administered in May 1986 to 889 fourth graders in nine schools in Brooklyn, New York. Counts of students tested in each school and school profile data are provided. Machine scoring procedures are detailed, and results tabulated, showing that the SMRT was relatively easy (mean about 80% correct) with a negatively skewed score distribution. Subtest percentage scores are given by school and by district, as well as norms in percentiles and stanines. A professional panel of teachers, supervisors, and two Educational Testing Service personnel rated the usefulness of SMRT and made suggestions for relevant school improvement plans. To develop mastery scores and minimum standards, the panel judged item difficulty for three reading competency levels (satisfactory, minimum, below minimum); these judgments were coordinated with actual proportion correct on each item for three groups defined by Degrees of Reading Power test scores. The report considers the validity, reliability, and predictive value of SMRT, and its relation to National Assessment of Educational Progress norms. Attachments include questionnaires administered to the expert panel and the test-site teachers. (LPG)