This manual was developed to address the need for health-related physical fitness testing of children with special needs. The first section defines the components of health-related physical fitness which consist of: (1)abdominal strength and endurance measured by a sit-up test; (2) flexibility, measured by a sit and reach test; (3) upper body strength and endurance, measured by two select methods--isometric push-up position and/or bench press; and (4) cardiovascular endurance, measured by a 12-minute aerobic movement test. The second section presents a brief overview of psychomotor tests available to children with special needs, as well as suggested guidelines for developing an individualized physical activity program. The third section presents suggested guidelines for placing the child with special needs in the least restrictive environment, the setting in which students can most effectively improve their psychomotor development. Suggestions for student awards in the form of participation, achievement, and excellence are described in the final section. (JD)