Bullying is a common occurrence in U.S.'s schools and is currently at the forefront of national attention. Unfortunately, students with disabilities are frequently the targets of peer-on-peer bullying. The purpose of this article is to examine the legal ramifications when students with disabilities are bullied in school settings. We address court cases, state educational agency decisions, Office of Special Education Programs (OSEP) guidance, and Office of Civil Rights (OCR) rulings that have held that bullying may violate Section 504 of the Rehabilitation Act of 1973 and the Individuals With Disabilities Education Act. School personnel must address the bullying of students with disabilities in a quick and efficient manner. In fact, these decisions show that when bullying is not stopped, school district officials and personnel may be subjecting their school districts to legal risks. We end by proposing how school district officials can develop legally sound policies for identifying, investigating, and responding to incidences of bullying of students with disabilities.