This digest suggests that bibliotherapy is a potentially powerful method for school teachers and counselors to use on many levels and in every school grade. It begins with a brief review of the history of bibliotherapy; continues with a discussion of some approaches to bibliotherapy (interactive, clinical, and developmental); then addresses the four basic stages of bibliotherapy (identification, selection, presentation, and follow-up); and also discusses benefits and limitations of bibliotherapy. (Contains 11 references.) (RS)