This paper describes some issues which should be considered when placing mildly handicapped children with their nonhandicapped peers for physical education, and contrasts two approaches which seek to produce effective mainstreaming. In some parts of the country, having decided that mainstreaming large numbers of mildly handicapped children was appropriate, state education administrators have issued regulations and guidelines aimed at ensuring delivery of services. However, it is suggested that mainstreaming policies and procedures which do not take account of conditions in widely disparate local school settings may be unlikely to match the unique needs of each handicapped child. An alternate way to ensure effective mainstreaming is discussed.