The study examined mainstreaming efforts for limited English proficient (LEP) handicapped students in a sample of 21 Local Education Agencies (LEAs). Directors and teachers from both the bilingual education and special education departments were interviewed, programs were visited and documents examined. The focus was on three main areas: identification, assessment, and placement of mainstreamed LEP handicapped students; instruction of mainstreamed LEP handicapped students in bilingual education classrooms; and inservice training for staff involved in servicing these students. Among findings were the following: bilingual special education programs were rare for non-Hispanic LEP handicapped students; there was a shortage of bilingual support personnel; most LEAs referred students for special education assessments only after attempting to modify their regular bilingual education program; there was a serious shortage in bilingual assessment personnel; more than half of the LEAs used bilingual teams to make placement decisions; all LEAs reported meeting the required monitoring of individualized education programs; bilingual education teachers tended to use the regular bilingual education curriculum with both handicapped and non-handicapped LEP children; and there was insufficient coordination between bilingual and special education departments in planning and providing inservice training. Recommendations were offered regarding personnel development, inservice training, testing and screening, and the interface between bilingual education and special education. (CL)