The Bilingual Education Act of 1968 and the Indian Education Act of 1972 have brought Navajo education into a new period, characterized by a return to a more traditional curriculum, within the parameters of the bicultural life ways of the contemporary Navajo. This document addresses the issue of designing educational facilities that contribute positively to a bicultural educational curriculum. The study examined traditional Navajo education as seen through the perspective of contemporary Navajo elders. Small group interviews in a loose, open-ended format were used to obtain data on the educational values of the Navajo elders. Navajo elders were concerned with the Navajo language, considering that a knowledge of Navajo was a prerequisite for understanding Navajo values and traditions; at the same time, they felt that English should also be taught. Elders believed that Navajo cultural practices should be taught and practiced and that students should have vocational and professional training, including traditional Navajo craft skills. In traditional education, life-style and education are inseparable, and elders wanted this holistic approach for their children. The final sections of the report are concerned with relating these values to school site location and organization, facility design and scale, space organization, interior decoration, and the use of special rooms, possibly resembling hogans, for Navajo language teaching. The document contains 30 references. (DHP)