This study examined the relationship between parent and child characteristics and competencies, supports available to the family, and how these factors influence parent and child outcomes. The sample of 48 mother-father pairs of young children with handicaps was assessed on a group of questionnaires, an interview at pretest, and 2 years later. Parental adjustment was found to be related to the child's communication competence and to the sex of the child. Satisfaction with support was related to parents' adjustment to the child. Fathers' views of their child's characteristics at pretest predicted mothers' views at posttest. An increase in children's social skills over the 2-year period was also associated with fathers' positive views of their child at pretest. The findings support the value of examining family characteristics that mediate the impact of a child's handicap, and the importance of attending to how family members influence each other over time.Public Law 99-457, the Education of the Handicapped Act Amendments of 1986, acknowledges the critical role that families play in the lives of children with handicaps. Part H of this Act, which will provide funds to plan, develop, and implement services for children birth through age 2, requires that programs determine family needs and respond to them in an Individualized Family Service Plan (IFSP). In order to develop plans that reflect a family's individual need for services, staff must be able to assess a family's strengths and needs, and to understand factors internal and external to the family that contribute to the family's functioning. Some guidance in planning intervention programs for this 38