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Intended for those involved in the production and use of children's books, this report calls attention to the need to create more and better books for and about handicapped children to help them overcome some of the barriers of isolation and loneliness that often separate them from their peers and condemn them to marginal lives outside the mainstream of society. Following brief discussions of the special educational challenges posed by handicapped children and of the different kinds of handicaps found among children, the report covers a number of topics, including the following: (1) the role of books in the everyday life of a handicapped child; (2) the special needs of children in institutions; (3) the need for braille, talking, tactile, large print, sign language, and easy reading books; (4) the use of children's books as a starting point for other activities; and (5) the depiction of handicapped children in books. A concluding section summarizes the main points made in the report. (FL)