This action research project implemented a program for improving social skills in order to establish positive interaction among 4th grade students at a northern Chicago suburban school. Social skills deficiency was documented through behavior checklists and referrals, teacher observations and student reflection. Teachers reported that low incomes, mobility rate, the need for social service support and cultural diversity hindered many of the students' interactions. A review of the literature suggested that children have problems getting along with others due to second language barriers, social incompetence, poor role modeling and the absence of curriculum related to social skills. Cooperative task and base groups were then created, and a classroom management plan that emphasized student responsibility and a positive climate was implemented. A social skills program was integrated into the curriculum. Post intervention data indicated an increase in student use of conflict resolution skills. It was also noted that students showed improvement in the targeted social skills, decreasing the amount of time teachers spent correcting negative behaviors. (Ten appendices contain daily and weekly tally sheets, student survey, group observer checklist, individual observer checklist, reduced lunch form, lessons for social skills, and message log responses of students.) (JPB)