Inclusive education in Japan was developed on the foundation of special needs education (SNE), which began in the early 2000s. There are various arguments as to whether the current multi-track system of SNE extending from segregated special needs schools to general education classrooms will lead to inclusive education, which is the goal of the Convention on the Rights of Persons with Disabilities. This study focuses on the movement for system reform of the SNE and examines its current status and challenges. It also discusses recent policy trends in general education classrooms that have affected the promotion of inclusive education. Furthermore, while making a global comparison using Organisation for Economic Co-operation and Development (OECD) data, this paper highlights Japan's advantages and challenges in achieving inclusive education. Finally, it examines the conditions for realizing a new Japanese-style inclusive education.