This paper considers etiological factors associated with fetal alcohol syndrome (FAS), presents a critical review of current findings on language deficits and FAS, and proposes a direction for future research which takes into account the semiotic aspects of language development. Criteria for establishing FAS as well as other typical characteristics are identified. Discussion focuses on methodological issues around findings that young FAS children often show delayed language development, produce less complex grammatical forms than linguistically matched younger normals, and perform more poorly on recall of short term memory tasks than younger children of normal intelligence. Researchers are urged to evaluate language skills in the context of real life communication situations and semiotic aspects including the use of eye contact and gestures. Tables detail the literature review. (Contains 52 references.) (DB)