The application of QCD to hadron dynamics at short distances, where asymptotic freedom allows a systematic perturbative approach, is addressed. The main theme of the approach is to incorporate systematically the effects of the hadronic wave function in large momentum transfer exclusive and inclusive reactions. Although it is conventional to treat the hadron as a classical source of on-shell quarks, there are important dynamical effects due to hadronic constituent structure which lead to a broader testing ground for QCD. QCD predictions are discussed for exclusive processes and form factors at large momentum transfer in which the short-distance behavior and the finite compositeness of the hadronic wave functions play crucial roles. Many of the standard tests of QCD are reviewed including the predictions for R = sigma/sub e/sup +/e/sup -/..-->..had//sigma/sub e/sup +/e/sup -/..--> mu../sup +/..mu../sup -//, the structure functions of hadrons and photons, jet phenomena, and the QCD corrections to deep inelastic processes. The exclusive-inclusive connection in QCD, the effects of power-law scale-breaking contributions, and the important role of the available energy in controlling logarithmic scale violations are also discussed. 150 references, 44 figures. (RWR)