This study applies multilevel data analysis to explore variables associated with engagement in inclusive community-based preschool settings. Data were analyzed at 2 levels: within and between classes. Results indicated that most of the variance (89-95%) in children's engagement with peers, with adults, and with activities occurred at the within-class level. Disability status did not predict engagement, but activity characteristics were significantly related to engagement. Another variable, co-teacher team characteristics, was also found to be a significant predictor of engagement, but to a lesser extent. The findings are discussed in terms of their implications for inclusive preschool classrooms using the co-teaching model.