Based upon the principles of "I Can Problem Solve" (ICPS), this books offers parents dialogues, activities, and communication techniques to teach their children how to resolve day-to-day conflicts with friends, teachers, and family members. The book provides parents with tools to teach their children how to think about everyday problems and develop and choose among alternative ways of resolving them. After an introduction that provides background information on ICPS, Part 1 gives an overview of helping children think about problems. Included in this section are games, activities, and background information on: (1) teaching children how to think, not what to think; (2) developing a vocabulary which helps children reason through problems; (3) understanding feelings; (4) finding alternative solutions; and (5) considering consequences. Part 2 provides an array of dialogues and activities parents can use to reinforce the concepts discussed in part 1. Examples of these include: (1) using puppet stories and memory games to understand problem situations; (2) creating a book of stories involving ICPS skills; and (3) sample dialogues about hitting, behavior while traveling in a car, and damaging property. (Three appendices include a self-evaluation checklist and thoughtful exercises for parents and children. Contains 12 references.) (JW)