The paper reviews research on the effects of placement in full-time special education classes, part-time regular classes with resource support, and full-time regular classes on mildly handicapped students. Also examined are programs designed to improve achievement, social-emotional adjustment, and social acceptance of the academically handicapped by their nonhandicapped peers. Studies of placements indicate no consistent benefits of full-time special education on any major outcomes; the research tells to favor full-or part-time regular class placement over full-time special education for the achievement, self-esteem, behavior, and emotional adjustment of the academically handicapped. Differences between full-time regular class placement and part-time regular class placement with resource help tend to favor well-constructed part-time programs for achievement, but not for social-emotional outcomes. Research indicates that cooperative learning programs and individualized instruction programs can improve the self-perceptions and behavior of mainsteamed academically handicapped students and acceptance by their nonhandicapped classmates. (Author/SW)