The author describes a study of a racially integrated elementary school in which segregated groups developed on the basis of appearance and mode of dress. The study was conducted in a midwestern town where there were well established black and white communities, as well as more recently established, poorer black and white segments of the population. Information was obtained by means of longitudinal and cross-section nonparticipant observation in one elementary school. Particular mode of dress and clothing were associated with being labeled a school success or failure. Children were observed to be grouped according to neatness, cleanliness, and style of dress. Racial groups were mixed, but social class groups remained separate. As one moved from grade to grade, classroom organization increasingly reflected social class rather than racial background. The author suggests that uniform dress be required in public schools in order to prevent this class segregation from occurring. (AV)