Three issues are addressed in this research review. First, do gifted and average children differ in their self-concepts? Second, what, if any, are the effects on self-concept of labeling a child as gifted or exceptional? Third, does placing the child in a separate enriched or accelerated classroom have any impact on self-concept? The paper begins with a discussion of issues relating to self-concept and giftedness constructs. This is followed by a review of the research evidence bearing on the three questions. That research is shown to yield variable results and to exhibit some methodological flaws. Nevertheless, some conclusions are drawn, including the following: (1) gifted students as a group show no major deficits in self-esteem; (2) indirect evidence suggests that labeling a child gifted may have a positive impact on self-esteem; and (3) there is some support, based on social comparison processes, that moving a child from a regular classroom to a homogeneous, highly gifted group may have a negative impact on self-concept. Implications of the results for future research and for the counseling of gifted students are offered, including the recommendation that researchers should pay more attention to treatment of self-concept and giftedness variables and that counseling with gifted and talented students should have a developmental focus. (Contains approximately 100 references.) (Author/DB)