Abstract: The educational placement of gifted children is a controversial issue for a long time. Firstly the paper introduced the research about the negative effect of gifted class on the students’ self-concept, which is called the big-fish-little-pond effect (BFLPE). Secondly the paper introduced the relevant research results that supported the BFLPE effect. Then the advantages and disadvantages of the diverse educational placements for gifted children were discussed. And finally the future research orientation in favor of the education for gifted children in China was brought out.

Key words: the big-fish-little-pond effect, gifted children, educational placement