This review of the literature examines the balancing of social and academic needs of students with disabilities and typical students in the context of the trend toward integrating all students into general classrooms regardless of their learning, physical, or emotional characteristics. Issues in the debate over inclusive education are identified, including dissatisfaction with the ideology of equal but separate education, the isolation of students with disabilities in special education programs, special education's failure to show overall positive outcomes for students, possible reductions in special education funding, and effects of reducing special services to students with special needs. A social perspective on the debate notes difficulties in teaching important social skills in segregated settings, negative social effects of biased peer attitudes, and special problems of integrating students with severe behavioral and emotional disabilities. An educational perspective suggests that the education of typical children may suffer in an inclusive classroom but also that the use of technology and other innovative techniques can individualize instruction. Educational reformers are urged to recognize the value of the inclusive paradigm while acknowledging that the general classroom may not be the best educational setting for every child. (Contains 13 references.) (DB)