This paper aims to provide practical advice for creating a placement test for English-as-a-Second-Language (ESL) or English-as-a-foreign-language (EFL) instruction. Three forms of concrete assistance are provided: a detailed literature review; detailed steps focusing on the creation of placement tests; and a set of recommendations focusing on individual parts of placement tests. The literature review defines a placement test, explores the components of the test in methodical detail covering listening comprehension, speaking, grammar, vocabulary, reading, writing, and language test creation, methodology, and practice. Recommended steps to take in the creation of a useful and accurate placement test include assembling an assessment team, defining test takers and objectives, developing rubrics and rating scales, testing the test itself, and training the scorers and administrators of the test. Recommendations focusing on individual parts of the placement test cover listening, reading, speaking, writing, and grammar. (Contains 28 references.) (KFT)