The Step by Step program was begun in 1994 as an experiment linking sound early childhood educational practice with concepts of democracy to create learning environments in which children practice choice and learn critical thinking skills, and in which parents actively participate in their child's education. This manual expands the program to infant and toddler caregivers and offers caregivers and parents strategies for supporting infant and toddler development. Chapter 1 provides an introduction on how infants and toddlers learn, how different age groups learn, how caregivers can support learning, and how to work closely with families. Chapters 2 through 5 feature a wide range of learning activities that are grouped for four infant and toddler age ranges (birth to 8 months, 8 to 18 months, 18 to 24 months, and 2-year-olds). Chapter 6 suggests a method of planning learning activities for toddlers and 2-year-olds using themes. Chapter 7 includes activities designed to involve families and communities in the classroom. Each activity includes a purpose, suggested materials, directions for preparation, activities directions, suggestions for extending or varying the activity, and a home connection. Symbols are used throughout the book to identify the activity's main audience and developmental goal(s). A matrix at the end of the introduction provides a guide for selecting activities for different developmental domains. The manual's 5 appendices include lists of developmental milestones from birth to age 3; suggested equipment, furniture, play materials, and toys for infant/toddler classrooms; a toy selection checklist; and a sample developmental goals chart. (Contains 13 references.) (KB)