One of the outgrowths of legislation enacted during the 1960's has been the deinstitutionalization of mentally retarded persons and the retention of others within the community. This study addressed the problem of nurses' perception of their competency to deal with this population wherever they might be encountered within community health care settings. The first hypothesis looked for differences in perceived competency based on the level of basic nursing education. Since sample sizes were not equal, the Kruskal Wallis test was utilized and a significant difference at the .001 alpha level was found. Hypothesis two looked for a relationship between perceived competency and degree of clinical contact with a mentally retarded population provided by the basic nursing preparation. Hypotheses three through six looked for relationships between perceived competency and adequacy of samples of content related to mental retardation provided by the basic nursing education: (1) risk factors; (2) etiology; (3) skills and techniques; (4) support systems. Hypothesis seven looked at the relationship between perception of competency and the adequacy of continuing education offerings to which nurses have been exposed. Hypothesis eight looked for a relationship between perceived competency and sustained personal contact with a mentally retarded person. A Pearson product moment correlation was run on each of these hypotheses and each revealed a positive significant relationship.