What do we mean by the learning environment? It is a term that has been used, often quite loosely, to refer to several aspects of the educational process. Providing a rich and stimulating environment in which children learn through exploration and discovery has been one influential notion for example. The term has also been used to describe the nature and content of the curriculum. This chapter takes two distinct and more focused perspectives. First it introduces what psychological theory and research has to contribute to the physical environment in which learning takes place. Secondly it discusses the psychosocial environment that exists in the minds of children and teachers as they work together. Each of these perspectives is informed by extensive research but application of this to classroom practice is, in general, fairly recent. The purpose of this chapter is to encourage an active consideration of the implications of the physical and psychosocial learning environments for children’s progress and for the emotional and physical wellbeing of both children and teachers.