In the field of education, there is considerable controversy about the appropriateness of an inclusive setting as a more beneficial environment than a resource room for students with learning disabilities. The purpose of this research is to determine whether students with learning disabilities perform better in an inclusive setting or in a resource room setting. The research consisted of a 12-week study of reading instruction for five students diagnosed with learning disabilities. For the first 6 weeks, the students received reading instruction in a resource room. For the remainder of the time, the students received reading instruction in an inclusive setting. The academic achievements of these students in the two settings were compared. Results show that academically as well as behaviorally, all students performed better in an inclusive setting. (Contains 22 references.) (Author/SM)