The nature of neuropsychological assessment and its application in the school environment are discussed. Neuropsychology is the study of how the brain and nervous system affect thinking and behavior. A complete neuropsychological assessment requires gathering and analyzing information on a child's: (1) physical, social, and psychological development; and (2) education. Sources of data for neuropsychological assessments include parental observations, formal observation, standardized measures, and other tests such as the Halstead-Reitan Neuropsychological Test Battery and the Luria-Nebraska Neuropsychological Battery. Educational application of neuropsychological assessment is particularly pertinent today due to recent laws concerning education of the handicapped, the wide range of programs offered by schools for the developmentally disabled, and the difficulties involved in identification of learning disabilities. Although neuropsychological tests are excellent diagnostic tools, they are limited by the following: thoroughly trained professionals must administer the tests and interpret results; several other indicators must be used along with test results; questions about the validity of norms for such tests; and the time consuming nature of the tests. A five-item list of additional reading materials is included. (TJH)