The level system is a behavioral procedure that alters the status of a participant contingent on his or her behaviors; within each level the amount of reinforcement is different. In most cases, level systems are paired with another form of treatment such as a token economy. In the current study, the effectiveness of a level system with a built in token economy was evaluated within three intensive residential group homes with 3 male participants. Each participant was diagnosed with mental retardation and behavioral issues. The level system was comprised of 5 different levels, each having different privileges and reinforcers. Each participant received token dollars for displaying replacement behaviors and the tokens were used to purchase items from a token store. A preference assessment was conducted to determine the items and their values. The results of the current study suggest that a level system with a built in token economy is an effective form of treatment in managing severe, inappropriate behaviors in individuals with mental retardation residing in a group home setting.