Physical education is a direct service which should be provided to all students with mental disabilities. Instruction in physical education should be guided by a comprehensive plan which outlines long-term goals and sequential objectives leading to attainment of these goals. The Achievement Based Curriculum model serves as an example of such a plan. The program plan can be established by either modifying the regular physical education curriculum for the mildly disabled or by designing individualized programs for the more severely disabled. Qualitative (criterion-referenced) tests should be used to assess, prescribe, implement, and continuously evaluate instruction. Four sources of qualitative assessment items include: "Project I CAN,""Michigan Essential Performance Objectives,""Data Based Gymnasium," and "Project Transition." Instruction should be implemented to maximize student success, time on task, and repetition of desired behaviors. Demonstrations and physical manipulation should be used to communicate both correct and incorrect performances. Non-competitive games and activities should be carefully selected to match specific instructional objectives. Formal and informal continuous evaluation procedures should be employed so that both teachers and students can be apprised of their performance. The physical education program should be integrated with community-based recreation programs to facilitate transition to independent use of leisure skills in community settings. Six figures are included. (JDD)