This article argues that school choice/competition ought to play a central role in determining school discipline policy. Unfortunately, the status quo emphasizes disciplinary rules established by central authorities and school choice is often limited. The author provides an overview of these issues and presents a model of rules- versus discretion-based discipline policies and school choice. Policies that suppress school choice lead to inflexible and unsatisfactory discipline policies, and centralized discipline policies reduce the positive aspects of school choice. Stronger incentives for schools are expected to help remedy this and vigorous school choice/competition is likely to be an avenue for doing so.