This paper describes and evaluates Grand Academy, an alternative junior high school set up in New York City by a local district and a nonprofit community-based organization to meet the needs of students who have twice failed to meet Board of Education promotioal standards in the seventh grade. The instructional program, provided by the school district, offers small class size, specially trained teachers, a variety of multimedia materials, and instructional management systems. Career education is infused into the regular curriculum. Intensive support services, vocational services, and afterschool programs are offered by the community organization. In general, findings suggest that the alternative school improves student's academic performance and behavior. They become motivated to attend school and project high aspirations for the future. But, they continue to lag so far behind academically that when they move out of the alternative school environment they are still unable to function effectively in the basic skills area. For most of these students, a strong vocational preparation program with a view toward termination of traditional schooling and entrance into the world of work may be the soundest plan. However, the success of the Grand Academy alternative demonstrates the importance of intervention at the junior high level in order to prevent dropping out. (KH)