The first two years of "Sesame Street" were evaluated as to their effectiveness as compensatory education. The evaluation assessed progress along some 36 primary goals of the show, as well as transfer effects, home background variables, parental attitudes, and socioeconomic status factors. Over 1,300 preschool children were tested, and many were observed as they viewed the show. As "Sesame Street" was intended primarily for disadvantaged children at home who had received no educational intervention, the major concentration in the sampling was on that subpopulation. A content analysis was made of the show; a questionnaire was administered to teachers whose classes viewed the show; and the amount of viewing for all subjects was assessed using four assessment techniques. A follow-up study was carried out the second year of the specific subpopulation of the first study. In addition, at home disadvantaged children who had not viewed the show its first year were sampled. Results of the evaluation include the following: (1) many tests of young children that are currently in use are not adequate; (2) among the subjects, there were no significant effects due to race; (3) the show had a marked effect not only in the areas of rote learning of basic skills but also in higher areas of cognitive activity, this effect being shown by both boys and girls; (4) amount of viewing was significant in gains made; (5) the disadvantaged tended not to view as much; (6) viewing of "Sesame Street" affected scores on the PPVT, administered as a posttest; and (7) disadvantaged 3-year-olds learned much of the material taught during the first year of the show. (DJ)