A qualitative grounded theory study examined how practicing professionals involved in the ED identification process reconstructed the category of "emotional disturbance" as it applied to students in an alternative educational setting. A grounded theory integrates six emergent themes and essentially reframes the existing ED criteria in contemporary practice. The new grounded theory reflects a move away from "exclusive" identification practices toward a more collaborative and reflexive problem-solving model with a focus on student need and best interest. Implications of the emergent grounded theory for policy and practice and the changing role of the school psychologist are discussed. (Contains 1 figure.)