In one attempt to deal with the dropout problems, faculty from the University of California (Los Angeles) have forged a partnership with the Los Angeles Unified School District and have turned existing high schools and continuation schools into community-based learning (CBL) programs. High school students in these programs attend field sites 2 days a week to see how basic skills and academic subjects are applied in the real world. Job Training Partnership Act funds are the program's primary support. An evaluation of the CBL program in the high school of 1 kindergarten through grade-12 magnet school (60 multi-ethnic CBL participants) is reported. Focus was on grades 9 through 12. Methodology included observation, student surveys, case studies of three students, and interviews with four parents. The CBL program was characterized by individualized instruction, small group work, student initiated learning activities, and caring and involved teachers. Quantitative data indicate that the CBL program has a significant relationship to grades and attendance, and both qualitative and quantitative data indicate the importance of certain program components to retention and learning in school. What mattered most to the students were the personal relationships between students and adults. Attachments include a table of findings, the survey results, and results from the survey of comparison students in traditional programs. (SLD)