Since 1982, the policy, of the U S. Department of Defense has been that homosexuality is incompatible with military service. In January of 1993, however, President Clinton announced his intention to reverse the military's ban and called for discussion about how best to implement a new, nondiscriminatory policy. This article reviews the social science literature relevant to such a discussion. Empirical data suggest that lesbians and gay men are not inherently less capable of military service than are heterosexual women and men; that prejudice in the military can be overcome, that heterosexual personnel can adapt to living and working in close quarters with lesbian and gay male personnel; and that public opinion will be influenced by the way this issue is framed. Any change in policy should be accompanied by strong measures to prevent harassment and violence against lesbians and gay men, educate heterosexual personnel, and enforce uniform policies regarding all forms of sexual harassment. Considerations relevant to a new policy that does not discriminate on the basis of sexual orientation are discussed.