This study examined how grouping arrangements affect students' achievement, social interaction, and motivation. Students of high, average and low ability were randomly assigned to homogeneous or heterogeneous ability groups. All groups attended the same plant biology course. The main results indicate that low-ability students achieve more and are more motivated to learn in heterogeneous groups. Average-ability students perform better in homogeneous groups whereas high-ability students show equally strong learning outcomes in homogeneous and heterogeneous groups. Results on social interaction indicate that heterogeneous groups produce higher proportions of individual elaborations, where as homogeneous groups use relatively more collaborative elaborations. In the discussion, these differences in social interaction are used to explain the differential effects of grouping arrangements on achievement scores. Practical implications are discussed and topics for further research are advanced.