Studies of school-aged children with physical handicaps often report cognitive-linguistic deficits, passivity, and inhibition. This study has attempted to determine whether this pattern is anticipated in earlier developmental periods, by examining the functioning of toddlers with physical anomalies (but without CNS damage) compared to premature toddlers (who share some aspects of deviant early experience) and to normal toddlers. Fourteen infants in each group were videotaped, longitudinally, at 9, 12, 18, and 24 months, in interaction with their mothers and in various semistructured situations. Developmental level was assessed at 12 months (Bayley scales) and at 24 months (Stanford-Binet IQ). Both groups of at risk toddlers performed more poorly in measures of focused play, language production, social initiative, affective expression, and 2-year IQ. Handicapped toddlers were more distractible, less compliant, and less willing to separate from their mothers, than were prematures. Patterns previously described for older handicapped children can therefore be recognized as early as the second year of life