This action research project examined the impact of a character education program to enhance the learning environment in schools. The targeted population consisted of students in grades 1, 2, 3, and 6 and in a self-contained second, third, and fourth grade special education class. Students exhibited behaviors that reflected a lack of positive character traits in the schools. The need for character education was documented through data revealing the perceptions of students, parents, staff, and administrators. The research investigated probable causes for the lack of positive character traits demonstrated by students. Through use of surveys, questionnaires, checklists, and interviews, it was determined that core character traits were deficient in the students' daily interactions. Upon reviewing suggested interventions from current literature by knowledgeable others, eight core character traits were selected as the character education program focus. Acknowledgment and recognition of these character traits were incorporated into the curriculum. Relating literature with a character theme was also a key strategy. Post-intervention data indicated that the implementation of a character education program encouraged positive student interaction. With daily implementation through direct instruction, use of literature, and parental involvement, the learning environment was greatly enhanced. (Contains 5 figures and 41 references. Nine appendices contain parent letter, parent and student surveys, three questionnaires, parent and student post-surveys, and project key words.) (Author/BT)