During the past two decades, the inclusion movements have made significant progress in (a) supporting the rights of children to have their special educational needs identified and met through education legislation and the right of individuals with disabilities to equal opportunities, (b) minimizing unjustified discrimination, and (c) developing support facilities and services for individuals with special needs (Disability Rights Task Force Final Report, 2004; Ministry of Education, 2004). Despite the apparent benefits of inclusion, and regardless of the teachers' commitment and positive attitudes; and notwithstanding their having the knowledge and skills necessary to meet the educational needs of diverse students with disabilities, teachers were concerned about the academic, social, and behavioral adjustment of the students with disabilities. The main characteristic of inclusive education is the teachers' willingness to accept students with special needs. Their attitudes and knowledge about inclusive education are important as these are indicators of such willingness. The purpose of this study was to examine teachers' attitudes and their perceived knowledge towards inclusive education in Punjab. The respondents (n=50) were the mainstream and special education teachers in the public primary and secondary schools. They were given a set of questionnaire which sought their responses regarding their attitudes and knowledge towards inclusive education. The data were analyzed using descriptive statistics such as mean and standard deviation. The statistical tool used for the analysis was Factor analysis. The main finding shows that, in general, teachers have positive attitudes towards inclusive education