This case study was prepared in conjunction with a Unesco survey of its member states concerning educational services for individuals with handicaps. The case study of Japan focuses on: (1) special education policy; (2) legislation, administration, and organization; (3) special education and vocational education provisions for students with specific disabilities and home-bound children; (4) finance; (5) research and development; and (6) voluntary organizations, parents, and issues. Japan's philosophy on special education emphasizes the importance of mentally and physically handicapped children being provided with appropriate education in accordance with the type and degree of their handicaps, so as to help them reach their fullest potential and enable them to participate actively in social life. Special schools provide educational places for the severely and moderately mentally and physically handicapped, and special classes or ordinary classes in ordinary schools for the mildly mentally and physically handicapped. (JDD)