This paper describes the elements of outcome-based education (OBE) and identifies the corresponding research base for each. The eight steps of OBE, evolved from the early effective-schools research and mastery-learning concepts, include: (1) define students' future environments; (2) derive outcomes; (3) design student demonstrations of learner outcomes; (4) develop curriculum materials; (5) deliver the instruction; (6) demonstrate outcomes; (7) document student performance; and (8) determine whether outcomes have been mastered. Ways in which OBE is applicable to special education are discussed. Conclusions are that the premises and principles of OBE are shared by special education, and that the implementation of OBE facilitates the placement of students with disabilities into the least restrictive environment. One table is included. (Contains 78 references.) (LMI)