The need for more precise analysis of the complex educational and psychological processes which exist in special classes for the emotionally handicapped, is emphasized. A psycho-educational model, involving teacher-pupil interaction, is developed, and a procedure (the Interaction Analysis System) is formulated for observing and recording behavior. Although satisfactory inter-observer reliabilities in excess of .85 are reported, further reliability checks are recommended for specific future uses of the instrument. The results of a study in 15 emotionally-handicapped classrooms, using the Interaction Analysis System, indicate significant differences in both teacher and pupil behavior between clinic and public school classes. The interaction Analysis System is proposed as a feasible means of analyzing the variability of teacher and pupil behavior observed in classrooms for the emotionally handicapped and for use in further research of the process. Teacher and pupil behavior categories are included. (LR)