Twenty-four normal kindergartners and 24 adult retardates, matched on discrimination performance, were each given four 2-stage discrimination shift treatments. These constituted half the treatments of a 2 × 2 × 2 factorial design in which the 3 factors were (1) Stage-1 positive cue retained in Stage 2 vs. Stage-1 negative cue retained (P vs. N), (2) extradimensional shift vs. intradimensional reversal (ED vs. ID), and (3) criterion of 6 consecutive correct on Stage 1 vs. criterion plus 40 overtraining trials (CR vs. OT). The PED and NED conditions compared transfer effects of posotive and negative cues when the novel (new) cue was rewarded on 50% of the trials instead of 100% and 0%, as was the case with the PID and NID problems, respectively. That is, the PED and NED conditions permitted a test of cue value effects that were unconfounded with cue novelty effects. Color and form stimuli were projected only 3 × 4 inch panels, which S was instructed to press. The results (errors in Stage 2) showed little differential transfer to be associated with the retention of the positive or negative cue in either the ID or the ED shifts. However, there was a large Shift effect, the ID shifts being easier than the ED shifts ( p < .001) and also a significant Shift × Overtraining interaction, ED being impaired by overtraining but ID facilitated ( p < .025). In combination, the Shift main effect and the Shift × Overtraining interaction were taken as support for a 2-process interpretation of discrimination learning.