ELLISVILLE STATE SCHOOL, THE LARGEST RESIDENTIAL FACILITY FOR MENTALLY RETARDED PERSONS IN MISSISSIPPI, IS THE SITE OF A VOCATIONAL REHABILITATION CENTER FOR BOTH INSTITUTIONALIZED AND COMMUNITY-REFERRED MENTALLY RETARDED PERSONS. THE CENTER PREPARES CLIENTS FOR OCCUPATIONAL AND RESIDENTIAL PLACEMENT IN THE COMMUNITY. THE STUDY ADDRESSES THE QUESTION OF WHETHER INSTITUTIONAL CLIENTS CAN BE VOCATIONALLY TRAINED BY THE SAME PROCEDURES USED TO TRAIN COMMUNITY-REFERRED CLIENTS. VARIABLES OF INTELLIGENCE QUOTIENT (IQ), AGE, SEX, LENGTH OF INSTITUTIONALIZATION, SPECIAL CLASS PARTICIPATION, JOB PERFORMANCE, AND COMMUNITY LIVING WERE CONSIDERED FOR 24 INSTITUTIONAL AND 24 COMMUNITY-REFERRED CLIENTS ATTENDING THE SCHOOL FROM 1970 THROUGH 1973. THERE WAS NO SIGNIFICANT DIFFERENCE IN VOCATIONAL PLACEMENT SUCCESS RATES BETWEEN THE TWO GROUPS. THE ACTUAL INCIDENCE OF SUCCESSFUL PLACEMENT WAS HIGHER FOR THE INSTITUTIONAL GROUP. THE MAJORITY OF PLACEMENT FAILURES RESULTED FROM INAPPROPRIATE SOCIAL-CIVIC BEHAVIOR RATHER THAN FROM POOR JOB PERFORMANCE. INSTITUTIONAL CLIENTS WHO WERE SUCCESSFUL IN VOCATIONAL PLACEMENT HAD IQ'S THAT WERE BELOW THE AVERAGE IQ AMONG CLIENTS WHO FAILED. SUCCESSFUL CLIENTS HAD SPENT LONGER PERIODS OF TIME IN RESIDENTIAL FACILITIES THAN HAD UNSUCCESSFUL CLIENTS. AGE, SEX, AND RACE WERE ALSO SIGNIFICANT FACTORS IN PLACEMENT SUCCESS; SPECIAL EDUCATION PROGRAM PARTICIPATION WAS NOT. SUPPORTING DATA AND A LIST OF REFERENCES ARE INCLUDED.