Issues and developments concerning the education of Israeli youth in residential schools are summarized in this report of a seminar which brought together educators from the United States and Israel. The first part of the report describes the residential school and gives its history as both part of a long tradition, and as it particularly evolved in the State of Israel. Other aspects of the residential school explored in this section are: (1) the wider social context for neighboring communities; (2) pupils' community of origin; (3) the organizations that own schools; (4) placement and supervisory organizations; (5) student population (presently consisting of youth, for the most part, from disadvantaged social groups); (6) the structure of the school, its role, ideology, and goals; and (7) the challenges that face residential schools. The second section summarizes the proceedings from the seminars. These papers examine selected issues in residential education or describe specific kinds of experiences in the operation of schools. An appendix coverinq facts and figures on formal and informal education in Israel concludes the report. (MJL)