Adapted physical education (APE) is designed to meet the unique needs of children with disabilities within the least restrictive environment. Placement in the right environment can help the child succeed, but the wrong environment can create a very negative experience. This article presents a systematic approach to making decisions when determining appropriate APE or physical education placements for students with disabilities and should enable teachers to understand better their own district policies regarding such placements. (Contains 1 figure and 4 tables.)