Based on a review of 30 years of academic research on infant and toddler development, this report describes patterns of child development from birth to 3 years of age and examines the implications for Scottish out-of-home care. Developmental patterns are described for the following age groups: birth to 3 months, 3 to 12 months, 1 to 2 years, and 2 to 3 years. For each age group, requirements for out-of-home care are delineated, focusing on the consistency and quality of relationships, provisions for mixed-age and same-age play opportunities, and the importance of meeting needs for progression in relationships and activities. Contributions of out-of-home care when children have special needs are considered. Research findings on the effects of quality child care for infants and toddlers are summarized, noting that in a multicultural society, child care can play a central role in cultural transmission and social inclusion. Research-based characteristics and training desirable for caregivers of infants and toddlers are also delineated. The report concludes with a list of nine suggested sources for further reading. (KB)