The Practical Skills Test (PST) is a new assessment of individuals’ knowledge of life skills. We evaluated the PST’s reliability, validity, and sensitivity to change among a homeless population. Participants were 123 homeless persons in a longitudinal experimental study who were assessed before and after intervention with the PST, Allen Cognitive Level Screen–2000 (ACLS–2000), and Impact of Event Scale–Revised (IES–R). The PST showed generally good internal consistency, no floor effects, and limited ceiling effects (<20% on each test). Supportive evidence for the PST’s convergent validity was seen in its moderate correlations with the ACLS–2000; we found no significant correlation with the IES–R. Paired t tests indicated that the PST is sensitive to changes in life skills after intervention, but effect sizes were small. The results suggest that the PST has generally good reliability and validity. However, ceiling effects suggest an area for further development.