We have obtained imaging in the K' band (similar to I-band rest frame) of t
he z = 1.786 radio galaxy 3C 294 with the 36-element curvature-sensing adap
tive optics system Hokupa'a and the Canada-France-Hawaii Telescope. At a re
solution of less than or similar to 0." 15, the galaxy is seen as a group o
f small but resolved knots distributed over a roughly triangular region sim
ilar to 1." 14 across. The interpretation of the structure depends on the l
ocation of the nucleus, as indicated by the compact radio core. Its positio
n is uncertain by greater than or similar to 0." 5 (2 sigma) because of unc
ertainties in the optical astrometry, but our best estimate places it at or
near the southern apex of the distribution. If this location is correct, t
he most likely interpretation is that of a hidden quasar nucleus illuminati
ng dusty infalling dwarf galaxy-like clumps that have characteristic sizes
of similar to 1.5 kpc.