This document is part of a series of monographs on community-based services for children and adolescents who are severely emotionally disturbed. The series is the product of a national study of community-based service approaches which identified over 200 programs serving emotionally disturbed children and included visits to several programs representing a variety of service delivery approaches. This volume begins with presentation of a model system of care, along with principles for service delivery. A literature- and program-based review of therapeutic foster care services is then presented, focusing on: definition and terminology; history; philosophy and goals; characteristics; variables such as treatment intensity and treatment approach; specific services such as preplacement, intervention, discharge, and follow-up; services to natural families; linkages; clients; staffing; treatment parents; resources; evaluation; and major advantages and challenges. Two programs are described in detail--the Family Network Program of the Lee Mental Health Center (Fort Myers, Florida) and Pressley Ridge Youth Development Extension (Pittsburgh, Pennsylvania.) One-page profiles of 32 therapeutic foster care programs are also provided. An appendix contains "The Story of Amanda," a case study of a 10-year-old emotionally disturbed child successfully treated in a therapeutic foster care home. (JDD)