Public Law 94-142, Education for All Handicapped Children Act, has had a dramatic impact on the schooling of exceptional children. Yet, rather limited attention has been directed to the one section of the law that mandates a particular decision-making approach for both the diagnosis and intervention tasks. The implications for the training and practice of applied psychologists who work with school-age children could be significant. This paper examines three areas of concern that impact the psychologist's role in working with exceptional children: (a) conditions that are considered crucial for the development of teams, (b) the literature regarding psychologists' input to school-based teams, and (c) reactions of school-based team members to such an approach. Related issues of importance to both trainers and practitioners in the field of psychology are then presented.