Performance-based assessment provides an alternative identification method for young gifted children. A performance-based identification process was developed and implemented to select three-, four-, and five-year-old children for inclusion in a school for gifted children. Literature regarding child development, characteristics of young gifted children, and multiple intelligences theories was analyzed to determine observable behavior. Educators experienced in gifted education designed activities to elicit such behaviors. Activities were designed to include language experiences, musical and kinesthetic activities, math games, and curiosity projects. Social and emotional behaviors were observed as children participated in the activities. Information from development profiles and parental questionnaires was reviewed. Rating-scale information and anecdotal records from the performance-based assessment were analyzed to provide the rationale for individual student's admission into the gifted program. A study evaluating the effectiveness of the performance-based assessment program over 3 years indicated it was an effective tool for identifying young gifted children. Includes one table. (Contains 28 references.) (Author/SLD)