By examining perception of biological-motion in three experiments, we investigated whether limitations in perceptual ability by individuals with mental retardation may extend to learning perceptual categories based on elements of actions. In two experiments individuals with mental retardation and age- and gender-matched controls reported gender and activity in randomly ordered point-light displays. In Experiment 2 decision times were measured and in Experiment 3, the effect of training with feedback on discriminating gender was assessed. Individuals with mental retardation identified walking, running, and stair-climbing without error but were less proficient in identifying throwing, had slower decision times for activity identification, and could not identify gender. For both groups feedback training improved gender identification in the short- and long-term. Improvements represented above-chance responding for the retarded group. Experimental outcomes are discussed in terms of capacity to classify perceptual stimuli as actions.