Twenty teachers of English in Iran Girls' College (Tehran) grouped students homogeneously to attack the problem of overcrowded classes of students with diverse abilities and achievement levels. Hopefully, pupils would identify with their groups and strive competitively for greater proficiency in the English language. School personnel and facilities, available class hours, the means of grouping, and the emotional reactions of the students were considered preparatory to the development of guidelines for grouping. It was determined that students would be placed in particular groups on the basis of final grades in previous courses. Also, teachers agreed that it was important for the students to maintain a balance between self-confidence and awareness of weaknesses in language. The results of the experiment, however, were largely unfavorable. Homogeneous grouping appeared to be profitable with advanced groups; but, with less advanced groups, the morale of the teachers and the students was negatively affected and learning was retarded. Perhaps the use of both heterogeneous and homogeneous grouping techniques would effect a better learning situation. (LK)