This thesis has attempted to determine psycholinguistic differences between inner-city retarded children and suburban retarded children. The instruments used in this study are: The Illinois Test of Psycholinguistic Abilities and The Peabody Picture Vocabulary Test. The subjects used in this study are forty eight-year-old educable mentally retarded children attending special classes in the Indianapolis Public Schools: twenty children from the inner-city and twenty children from suburban schools. Language differences between the two groups are demonstrated.In addition, there is a description of language differences of four subgroups: girls, boys, black children, white children.