Effects of the label "mentally retarded" on attitudes of peers were examined among 48 third grade pupils. Half of the Ss were shown a videotape of an actor displaying acting out behavior, while the remaining Ss were shown a videotape with the same actor engaging in passive behavior. Half of the Ss in each group were told that the actor was a mentally retarded boy in a special class and the other half were told that he was a fifth grade pupil. Analysis of variance results revealed a significant interaction between label and behavior, indicating that Ss responded more negatively to the "mentally retarded" actor who displayed acting out behavior than to the same actor who exhibited identical behavior but was not labeled. Data suggested that labels should be considered only as they interact with specific behavior. (Author/CL)