The use of nonparental day care for children has increased over the past several decades and mirrors changes in the social and economic fabric of the United States. In the case of the early preschool child, precise understanding of the implications of day care for later development remains elusive. Of equal concern are the implications of early preschool day care for the family unit and especially the mother. What constitutes appropriate, safe, and affordable day care has been debated. The impact of poor care is demonstrable for both the child and family. Quality day care offers the potential for positive psychological development of the child and the family. The research related to day care for young children has expanded our knowledge of child development, but it also highlights a need for expanded research using refined measures of psychological growth and child-parent interaction. This report was approved by the APA Board of Trustees in December 1992.