THE USE OF OCCUPATIONAL THERAPY (OT) WITH EMOTIONALLY DISTURBED CHILDREN IN A RESIDENTIAL TREATMENT SETTING OR MILIEU IS DESCRIBED ON THE BASIS OF 6 YEARS OF EXPERIMENTAL WORK. CORRECTIVE TREATMENT AND REHABILITATION APPROACHES ARE EXPLAINED. ALSO CONSIDERED IS THE CONTRIBUTION OF OT IN (1) THE DEVELOPMENT, FULFILLMENT, OR MODIFICATION OF MOTOR SKILLS AND COORDINATION, (2) INTERPERSONAL RELATIONSHIPS, (3) SOCIAL SKILLS, (4) BEHAVIORAL FUNCTIONING, (5) PSYCHOLOGICAL AND EMOTIONAL NEEDS, (6) PSYCHODYNAMIC CONFLICT, AND (7) COGNITIVE PERCEPTUAL MOTOR DYSFUNCTION. AFTER AN OVERVIEW AND RATIONALE ARE PROVIDED, MILIEU TREATMENT PLANNING IS DEFINED IN TERMS OF PROGRAMS, GENERAL ATTITUDES, BEHAVIOR MANAGEMENT, AND TREATMENT STAGES. THE DISCUSSION OF EVALUATION AND TREATMENT PLANNING PERTAINS TO GRADED ACTIVITY PROGRAMS, EVALUATION PROCEDURES, AND PROGRAM PLANNING. EIGHT CASE HISTORIES ARE PRESENTED WITH CLINICAL FINDINGS, OT EVALUATION, AND PLAN. ACTIVITY GROUP PROGRAMS, WITH LISTS OF MATERIALS AND CRAFTS, ARE DESCRIBED FOR BASIC, INTERMEDIATE, AND ADVANCED SKILL LEVELS. PROBLEM AREAS DEALT WITH ARE THOSE OF APPLICATION, HANDLING MALADJUSTED BEHAVIOR, INTEREST GROUPS, AND PHYSICAL FACILITIES, INDIVIDUAL PROGRAMS ARE OUTLINED--TWO WITH CASE HISTORIES FOR THE MODIFICATION OF PSYCHOLOGICAL PROCESSES AND TWO FOR TRAINING PROCEDURES. APPENDIXES INCLUDE MILIEU TREATMENT DATA FORMS, AN EVALUATION BATTERY, A COGNITIVE PERCEPTUAL MOTOR MANUAL AND A RATING SUMMARY, AND A LIST OF 25 REFERENCES AND RESOURCES. A BIBLIOGRAPHY LISTS 55 ITEMS. THIS DOCUMENT IS AVAILABLE FROM THE WAYNE STATE UNIVERSITY PRESS, DETROIT, MICHIGAN 48202. (HK)