Eight-year-old Sunnie Kahle attended Timberlake Christian School in Virginia until the school complained about her appearance.
Doris and Carroll Thompson, Kahle's grandparents who adopted and raised the youngster, told television station WSET that they pulled the child from school after receiving a letter from the school principal.
"You're probably aware that Timberlake Christian School is a religious, Bible believing institution providing education in a distinctly Christian environment," the letter read.
According to WSET, the letter "goes on to say that students have been confused about whether Sunnie is a boy or girl and specifies that administrators can refuse enrollment for condoning sexual immorality, practicing a homosexual lifestyle or alternative gender identity."
An administrator at Timerblake told WSET that the problems go "far beyond [Kahle's] hair length" and that certain "things disturbed the classroom environment."