This paper describes the Parent-Caregiver Project, a research and demonstration program which focuses on the relationship between parents and caregivers in group day care settings. The project's purpose is two-fold: (1) to determine the nature of and identify variables that appear to influence parent-caregiver relationships in day care settings; and (2) to demonstrate effective day care practices that attempt to strengthen the relationship between parents and nonfamilial caregivers. The introduction sets forth the project's theoretical framework. Four areas of the parent-caregiver relationship serve as focal points of the research component of this project: (1) childrearing belief systems; (2) parent and caregiver attitudes toward one another; (3) communication channels' content, frequency and setting; and (4) center policies and practices toward parents. The goal of the demonstration component is to develop and demonstrate practices that improve the intersection of family and child care center social systems through a focus on communication between parents and caregivers. The steps to be taken in developing the demonstration program and the intended evaluation methods are discussed. (ED)