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Among recent criticisms levelled against traditional administrative theory those raised by adherents to the Critical Theory perspective have gained considerable influence. This paper examines their claim that Habermasian Critical Theory in particular is in a better position to solve the theoretical and practical problems of educational administration. The focal points of discussion are Habermas's fundamental categories of “interests” and the “ideal speech situation” since their theoretical coherence is a minimum requirement for the theory's validity and practical applicability. It is concluded that Critical Theory, while being the most ambitious attempt to date to provide a new, post‐positivist framework for social and administrative studies, has insufficient epistemological resources to justify its claims. As a result, the theory is driven to rational a prioris which deprive it of empirical content and relevance. Since Critical Theory claims to have reunited theory with practice, lack of empirical content would seem to disqualify the claim and render questionable the theory's value for educational administration.