This paper reviews the effectiveness of music therapy in treating children with psychiatric and developmental problems. The clinical utility of music therapy is first evaluated by examining the foundational effects of music on affect and behavior. Next, the two broad approaches to music therapy, active and passive music therapy, are discussed. This discussion is followed by a critical review of music therapy as applied to specific problems, including self-esteem problems, psychosis, developmental delays, expressive and receptive language deficits, social skills deficits, and autism. Early intervention music therapy programs, music therapy for children who are gifted, and psychiatric music therapy problems are also assessed. Finally, the utility of music therapy programs is considered. Findings from the review indicate there is evidence that music therapy is an effective treatment for a variety of problems. Additionally, at least one study suggested that music therapy is an equally viable treatment to verbal therapy. The studies also provide support for developmental and physiological theories of music therapy. Unfortunately, the review also found that music therapy research is fraught with methodological problems that weaken possible arguments for using this approach over other techniques. Additional research into the effectiveness of music therapy is urged. (Contains 116 references.) (CR)