Grading within a single school was studied by comparing the grades with the policy of grading recommended by the high school, and the relationship between the grades and two tests administered by the school. Six hundred fifty-five graduates from the 1964, 1965 and 1966 graduating classes made up the sample. The grades used were those received during their three years in high school. The tests were the Henmon-Nelson Test of Mental Ability administered in the tenth grade and the American College Test which was taken in the twelfth grade. The Pearson r Correlation Coefficient was used to make the correlations. The number of A and B grades given in all subject areas were beyond that recommended by the school policy. A t test showed the differences in grading between required subjects and nonacademic elective subjects in the lower 25 percent of each graduating class to be significant at the .01 percent level. In the upper 25 percent the differences were not significant. The required subjects area grades correlated highest with scores from both tests.