This paper presents a synthesis of the literature reporting the experiences nationally of alternative schools, particularly in the realm of preventing school dropouts and reaching those who have already left school. Characteristics of alternative schools are described, including structure, reputation, and purposes. The dropout problem is discussed, including dropouts' dislike of school, indicators associated with potential dropouts, and potential dropouts' discipline problems. Characteristics of alternative schools are presented in detail. It is noted that: (1) most alternative schools are located away from the regular high schools; (2) alternative schools' programming attempts to foster academic and social comforts; (3) friendly relationships between students and teachers are stressed; and (4) experiential learning is emphasized. The effects of alternative schools on potential dropouts are discussed. These effects include success in retaining potential dropouts in school, reduction in truancy, accumulation of high school credits, and improved student attitudes and behavior. Elements of successful alternative schools are presented in these categories: size, choice, autonomy, and varied learning opportunites. The wide variance in these schools' costs is discussed. In conclusion, alternative school-based dropout programs are recommended for their probable success. A select bibliography with 46 entries is included. (ABL)