A review of research on rural/small schools' problems, prospects, and possible alternatives indicates that these schools find themselves in a cycle of financial trouble, community disintegration, and dwindling population; they face problems such as low tax base, lack of financial support by state and federal government, inadequate facilities and instructional materials, inadequate overall funding, poor teacher quality, isolation, and lack of functional jobs. However, such schools have positive aspects in terms of potential for humanistic, personal, and community development. Major prospects for rural/small schools are found to focus on personal contact between teacher and students, opportunity for school and community to work together for rural development (specifically in the area of human problems), use of individualized instruction, and potential for developing alternative educational programs. Changes in poor instruction, school-community situations, and underfinanced programs of instruction revolve around continued programs for teacher improvement, regional cooperatives, experimentation with unique classroom instructional approaches, community school concepts, and new modes of financial support. Rural/small schools can give students of all ages comprehensive educational and social programs through regional approaches. (RS)