The report describes a study of the interaction between native Spanish-speaking and native English-speaking students in four classes (one kindergarten, one first-grade, and two second-grade) in a suburban community, and a program to increase interaction. Initially, lack of interaction between these groups was documented using classroom observation, structured interviews, and teachers' anecdotal information. Probable causes for interaction difficulties were identified, including cultural, linguistic, and socioeconomic differences and inadequate social skills. It was determined that in addition to negatively affecting students' school and peer involvement, lack of interaction may also be promoting prejudicial attitudes. A review of solution strategies suggested in the professional literature and analysis of the problem setting resulted in use of cooperative learning strategies and cultural awareness training to ameliorate the problem. Post-intervention data show slight to significant increases in peer interaction between same- and different-language students in all areas measured, attributed to the intervention. Appended materials include the peer interaction observation checklist used, the interview format, sample social studies, language arts, math, and social skills lesson plans, and a bibliography of multicultural children's literature. Contains 25 references. (MSE)