This factsheet discusses the goals and principles that govern the development of culturally competent mental health programs for children and adolescents and their families. Principles include: (1) the family is the consumer and usually the focus of treatment and services; (2) Americans with diverse racial/ethnic backgrounds may have a unique set of mental health issues that must be recognized and addressed; (3) service providers must respect different cultures and build upon their own cultural knowledge as well as the families' strengths; (4) differences between the world views of providers and consumers must be acknowledged and addressed; (5) cultural knowledge and sensitivity must be incorporated into program policy-making, administration, and services; (6) natural helping networks such as neighborhood organizations should be respected and, when appropriate, included in the treatment plan; (7) in culturally competent systems of care, the community, as well as the family, determines direction and goals; (8) programs must tailor services to their consumer populations; and (9) when boards and programs include staff who share the cultural background of their consumers, the programs tend to be more effective. Further recommendations for culturally competent programs are made for the policy-making, administration, and service provider levels. (CR)