The document is a basic guide for planning and organizing a sheltered workshop, a work-oriented rehabilitation facility with a controlled working environment and individual vocational goals. The workshop utilizes work experience and related services to help the mentally retarded person progress toward normal living and a productive vocational status. The first of nine chapters defines types of workshops and clients and discusses basic considerations. The State and Federal laws that control and provide financial assistance to workshops are described in chapter 2. Chapter 3 deals with budgeting for operations. Procedures related to the industrial operation of the workshop are detailed in chapter 4. The rehabilitation services which should be provided by the workshop are delineated in chapter 5. Business and personnel management, public relations, and standards, accreditation and evaluation are subjects covered in the remaining three chapters. Appended are: a guide to organization and administration, a list of national organizations and Federal agencies interested in the handicapped, a list of Federal and national technical resource organizations, and a 25-item bibliography. (Author/MS)