The burden of suffering experienced by children with mental health needs and their families is causing a health crisis. As demonstrated in this report of the Surgeon General, the highest levels of government have elicited interest in the mental health needs of children. The Surgeon General's Conference on Children's Mental Health and a meeting on psychopharmacology for young children helped establish recommendations for the basis of a national action agenda. The guiding principles are: (1) promoting the recognition of mental health as an essential part of child health; (2) integrating family- and child-centered mental health services into all systems that serve children and families; (3) incorporating perspectives of children, youth, and families in development of mental healthcare planning; and (4) developing a public-private health infrastructure. Action steps are presented to help reach these goals. Conference proceedings are reported from the Surgeon General's Conference for developing a national action agenda. Summary statements are included from the speakers and discussants at the conference. Panel 1 discussed identifying, recognizing, and referring children with mental health needs. Panel 2 reviewed health service disparities. Panel 3 presented state of the evidence on treatments, services, financing, and systems of care. Appended is a "Policy Brief." (JDM)