Reviewed is the literature on issues relating to the evaluation of special education programs with special emphasis on the comparison of regular versus special class placement and Canadian programs. Results of studies dealing with effects of mainstreaming or special class services are reviewed in terms of social acceptance by peers, self concept, and attitude toward school. Four models to improve delivery of services to handciapped children are compared. Also reviewed are effects of socioeconomic influences on school achievement and adjustment and followup studies on the effects of special education. Identified and discussed are new directions such as more process oriented (rather than outcome oriented) evaluation approaches, a decrease in the categorization of children using medical and psychological terms, attempts to match students to teaching systems, and prevention of later disability through early identification and intervention. (DB)