Within the last two decades many governments in different countries of the world have intensified the efforts for integrating children considered as having special needs in their neighbourhood schools. In the past, children defined as having special needs were educated in 'special' schools and institutions separated from their age-mates. The perception that education should be available to all children regardless of their differences and needs has led to the development of inclusive education. The philosophy behind inclusive education has been strengthened in the 1990s and promises to treat all children categorised as having special needs as individuals who have equal rights to education.The philosophy of inclusive education does not simply refer to the placement of children with special needs into mainstream schools, but it is also concerned with the conditions under which we can educate all children effectively. Inclusive education could be defined as the process in which schools try to respond to all pupils as individuals, reviewing the organisation and provision of their curriculum. Thus, in Cyprus, where this piece of research took place, the integration of children considered as having special needs into mainstream schools constitutes an articulated will of the state. In July 1999 the House of Parliament passed the Education Act for children with special needs and it was followed by the regulations that govern this Act. According to this law certain children can be defined as having special needs. These children can receive support or 'special education', which is usually provided individually in segregated settings. The Education Act for children with special needs together with the regulations that govern it constitute the statutory framework for the education of children seen as having special needs. This legislation has made clear which child can be considered as having special needs and also specifies the necessary provisions for 'special' education. One of those provisions is the attendance of children categorised as having special needs in 'special units integrated and embodied in mainstream schools'.A 'special unit' is a class that functions in a mainstream school and in which certain children categorised as having special needs study. These children are those whose problems, the seriousness of which is determined by a committee that is specified by the legislation, do not allow them to study in mainstream classes together with their age-mates. The function of 'special units' within the last few years in Cyprus raises the following questions: How do 'special units' function regarding their programme, their staff and the children studying in them? To what degree is their function consistent with the principles of inclusive education? What modifications do schools make in order to accept the children that study in these units and to provide them with equal opportunities in teaching and learning? How do teachers treat these children? How do the other children behave towards the children of 'special units'? How do the children of units feel in the school environment? In this paper we will try to answer the above questions. The purpose of this study is to investigate and make sense of the way that 'special units' function in Cyprus, focusing on a particular unit with five children considered as having special needs. Specifically, we will study the ways the other stakeholders (teachers, headteacher, children) treat the children of this unit, as well as how the children themselves feel in the school environment.