In her recent pamphlet "Special Educational Needs: a new look (2005)," Mary Warnock has called for a radical review of special needs education and a substantial reconsideration of the assumptions upon which the current educational framework is based. The latter, she maintains, is hindered by a contradiction between the intention to treat all learners as the same and that of responding adequately to the needs arising from their individual differences. The tension highlighted by Warnock, which is central to the debate in special and inclusive education, is also referred to as the dilemma of difference. This consists in the seemingly unavoidable choice between, on the one hand, identifying children's differences in order to provide for them differentially, with the risk of labelling and dividing, and, on the other, accentuating the sameness and offering common provision, with the risk of not making available what is relevant to, and needed by, individual children. In this paper, I argue that the capability approach developed by Amartya Sen provides an innovative and important perspective for re-examining the dilemma of difference in significant ways. In particular, I maintain that reconceptualising disability and special needs through the capability approach makes possible the overcoming of the tension at the core of the dilemma of difference, whilst at the same time inscribing the debate within an ethical, normative framework based upon justice and equality.