One of the provisions of the law for special education in Cyprus is for children considered as having special needs to be educated in "special units". The purpose of this study is to investigate and observe the way that "special units" function in the educational environment in Cyprus, paying particular attention to one unit in which five children categorized as having special needs study. In particular, this paper studies the ways in which the different stakeholders (teachers, head-teacher, peers) treat the children of the special unit, as well as, how these children say they, feel in the school environment. The results show that the existence of the "special unit" and the way it functioned amounted to problematic situations and acted as marginalization factor for the children who attended it.