The report of the National Longitudinal Transition Study presents initial findings on characteristics of school dropouts since 1985-86 among more than 8,000 youth (ages 13 to 23) with disabilities. The report also addresses characteristics of schools or programs that may affect the decision to drop out among disabled youth. The first section compares the secondary special education population to the nonhandicapped student population noting such differences as increased numbers of males, single parent backgrounds, and tendency to stay in high school longer for the disabled population. The next section describes the incidence of and reasons for dropping out among youth with disabilities. The graduation rates for youth with orthopedic, visual, or hearing impairments approach the rate for nondisabled students, while graduation rates for youth with emotional disturbances, mental retardation, or multiple handicaps are below 50%. Dropout reasons are similar to those for nondisabled students--not liking school, not doing well in school, and behavior problems in school. No significant school characteristics were found to relate to incidence of dropping out in this population. Dropping out was related to student age, sex, ethnicity, previous disciplinary problems, and degree of social integration. Tables provide detailed statistical data and the appendix gives an overview of the study. (DB)