Computerized adaptive tests (CATs) make it possible to estimate the ability of each student during the testing process. The computer presents items to students at the appropriate level, and students take different versions of the same test. Computerized testing increases the flexibility of test management in that: (1) tests are given on demand and scores are immediately available; (2) differences among administrators cannot affect scores and trained administrators are not needed; (3) tests can be individually paced; and (4) test security is increased. Computerized testing also offers options for timing and formatting, increases efficiency, and can provide accurate scores over a wide range of abilities. Some limitations to CATs are considered. CATs are not appropriate for some subjects and skills. Hardware limitations restrict the types of items that can be administered by computer, and many schools simply do not have the resources to administer CATs. A relatively large sample is needed to norm test items; comparable scores depend heavily on the quality of the estimates of item characteristics because each student answers a different set of items. The military has been among the pioneers in using CATs and at least two public school systems have begun to use them. A list of six organizations involved in computerized adaptive testing is included. (SLD)