This report on the potential of new interactive technologies for improving learning examines developments in the use of computer-based technologies, analyzes key trends in hardware and software development, evaluates the capability of technology to improve learning in many areas, and explores ways to substantially increase student access to technology. The role of the teacher, teachers' needs for training, and the impact of federal support for educational technology research and development are reviewed as well. Specific topics addressed include the adoption of computer and video technologies; evaluation research; computer-assisted instruction (CAI) and intelligent CAI; mathematics and science; multimedia programs; database management; word processing; language arts; electronic networks; cost-effectiveness; software; and research and development. The future of classroom instruction is discussed in terms of networking and distance education, CD-ROM and computer/video convergence, hypermedia, integrated learning systems, and videodisks. Appended materials include a summary of state activities in educational technology; criteria used to evaluate educational software; principal programs of the U.S. Department of Education that are providing funds for technology in education; a list of acronyms; and a bibliography of contractor reports. Also included are a copy of the September 1988 OTA Report Brief entitled "Power On! New Tools for Teaching and Learning," and a September 15, 1988 Press Release announcing two videotapes on the influence and potential of educational technology in public schools, now available from SL Publications, New York.