A demonstration program featured a mainstreamed setting for six hearing impaired children (five hard of hearing and one deaf) in 2nd and 3rd grades. A full time special education teacher used sign language and cotaught with the regular classroom teacher. Many of the problems encountered in the first year of the program were dealt with successfully in the second year, as the hearing impaired students became more accepted and more a part of the classroom. Teacher satisfaction was generally high, as was administrator response. In addition to academic and social growth, the hearing impaired children greatly increased their communication skills. The class as a whole showed progress in learning to solve their own social and academic problems without adult intervention. (Evaluative data are appended.) (CL)