The educational system in Montana is not working for its American Indian students. Dropout rates continue to be extremely high, standardized tests scores are mostly below the state benchmark, curriculum and instruction are not oriented toward promoting Indian culture and history, and the local Board of Trustee system still does not promote involvement of tribal governments. This publication presents the history of educating Indian students in Montana in the hope that it will provide insight for the education community to create a more successful model. Six chapters cover the colonization of Indian tribes, the Indian treaty period, the allotment period and loss of Indian land, the federal boarding school era, the tribal reorganization period, and the termination of Indian tribes. A seventh chapter presents three models that may reduce the extremely high dropout rate among Montana's Indian students. These models propose training teachers to understand the history, culture, and contemporary contributions of Montana's Indians and to teach Indian students; using strategies to increase the percentage of Indian teachers; providing a curriculum of Montana Indian history, culture, and contemporary issues to all students; and establishing Indian language immersion schools. Appendices include 21 references and a chronology of important dates in Indian education. (TD)