Malaysia's move towards inclusion was given impetus by its participation in workshops and conferences set up under the auspices of the United Nations (UNESCO 1990; UN 1993; UNESCO 1994). Inclusive education was introduced in the Education Act 1996 as part of the continuum of services available for children with special needs. The purpose of this paper is to discuss the interpretation of policy pertaining to inclusion, its contradictions and its translation into practice within the Malaysian context; and to share experiences on how the national context explains and constrains inclusive practices. This paper examines the problematic issues associated with the interpretation and implementation of inclusive practices at community and school levels. Barriers to inclusion are also discussed from the perspective of conceptualisation and meaning of 'special educational needs' and competing priorities of the school system.