This paper challenges the theoretical knowledge base upon which the Canadian separate special education delivery system has been developed. Arguments for integration of special needs children into the mainstream of education are presented from a social-ethical, educational-psychological, and legal-legislative perspective. Examination of the current service delivery model notes that a disproportionate number of minority and bilingual children have been misclassified as mentally handicapped; that labelling children as mentally handicapped has a stigmatizing effect; that labelling results in the "self-fulfilling prophecy" phenomenon; that misclassification between moderately handicapped, learning disabled, and emotionally disturbed categories is common; and that student placement is often dependent on standardized tests with major deficiencies. It is concluded that a general education program is needed that includes instructional strategies that can accommodate and adapt to children with varying educational needs. (Author/DB)