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Abstract: The re-emergence of testing in the American school system and ways in which the education and measurement fields are attempting to enhance the potential value and importance of tests are examined in this sourcebook. A national profile of the use of testing in schools describes the wide variety of tests used, the purposes for which principals and teachers use test results, and their opinions on how successful test data are in meeting their goals. Guidelines are provided to help teachers and parents better prepare students for standardized testing. The issue of equity in the testing of minority children and ways in which testing can be used to help all children learn are explored. Additional topics include 1) the strengths, limitations, and inner workings of teacher-made tests, 2) understanding, evaluating, and using latent trait research analysis and item response theory, and 3) current and future applications of microcomputer technology in school testing. Five case studies in specific school systems illustrate how some of the theoretical issues in testing have been applied in state and local practices. Case studies describe 1) improvement of test results dissemination and use through cooperative planning, integrated database development, and public media, 2) ways in which a testing program can support a district-wide instructional improvement process and formation of a building test coordinators' network, and 3) testing as an effective part of a statewide accountability and instructional improvement program. (aje).