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The purpose of this study was to examine the predictors of learning organizations in educational settings. More specifically, the study examined the extent the successful and failing schools exhibit the attributes of Watkins, & Marsick’s (2004) Learning Organization Model. A causal-comparative design was employed. Data gathered from clustered random samples of failing and succeeding schools in a southeastern state. Results showed Watkins, & Marsick’s Learning Organization Model, which was originally developed for business organizations, is a valid instrument to study educational organizations’ learning. The results also showed that failing schools and successful schools exhibited different patterns of learning organizations. Psychological safety and transformational leadership emerged as the significantly contributing factors of schools’ level of learning organization.