The background, organization, and operation of the Alaska Psychiatric Institute (API), a residential program for behavior disordered and emotionally disturbed children and adolescents, are described. Components of the educational program at API, including academic and social assessment, individual education plans, and elementary and secondary curricula are described. A behavior modification and monitoring system which uses a token economy approach is analyzed. The elementary curriculum is said to consist of six academic subject areas, while the thrust of the secondary curriculum is explained to be geared to functional survival skills in the community. Public school involvement with API is discussed, and the importance of students' reintegration is stressed. (CL)