This ERIC digest considers three important issues for educators of bilingual students, specifically Spanish-American children. First, it articulates the ongoing debate about which language to use for instruction. Second, it examines myths about the negative effects of bilingualism. And finally, it presents supporting evidence and suggestions for creating a responsive educational environment for bilingual Mexican-American students. The bilingualism debate pits those who believe that two-language instruction helps develop general language and thinking skills against those who believe early and intensive English instruction is the most effective and appropriate way for learning in an English-dominant environment. Early research identified bilingualism as a handicap, finding that bilingualism caused language confusion among children. More recent studies show that young children who live in nurturing bilingual environments do not develop linguistic handicaps and even demonstrate cognitive advantages over monolinguistic children. Current studies support the idea that bilingual language instruction should match the natural social context of the student, showing that the better a child masters language in general, the better that child performs academics in English. The digest concludes with five recommendations for teachers who wish to give rewarding instruction to bilingual and Spanish monolingual students. This digest includes 10 references. (TES)