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The Department of Veterans Affairs (VA) amends its adjudication regulation that pertains to extra-schedular consideration of a service-connected disability in exceptional compensation cases.  In a recent decision, the United States Court of Appeals for the Federal Circuit (Federal Circuit) held that VA's regulation, as written, requires VA to consider the combined effect of two or more service-connected disabilities when determining whether to refer a disability evaluation for extra-schedular consideration.  VA, however, has long interpreted its regulation to provide an extra-schedular evaluation for a single disability, not the combined effect of two or more disabilities.  VA proposed to amend its regulations to clarify VA's regulation pertaining to exceptional compensation claims to explain that an extra-schedular evaluation is available only for an individual service-connected disability, if the disability is exceptional or unusual so as to make application of the rating schedule impractical, but may not be based on the combined effect of more than one service-connected disability. VA will respond to public comments in the final rule.