The extent of grade retention in Massachusetts is assessed in this report, which examines current research on grade retention and suggests alternative practices for dealing with low achieving students. Data were derived from the Chapter 188 Individual School Report for 1987-88, an annual survey of Massachusetts conducted by the Department of Education. A total of 1,744 out of 1,768 schools returned completed surveys, a 99 percent response rate. Following an introduction that discusses the history of grade retention and its relevance to the present, chapter 1 presents a review of research, concluding that grade retention may hinder rather than enhance student achievement. Chapter 2 offers recommendations and administrative strategies for assessment and planning, curriculum and instruction, student grouping and promotion, and staff development. Seven projects to reduce the numbers of grade retentions are briefly described in the third chapter. Statewide data on students recommended for grade retention are presented in chapter 4. Three figures and five tables are included. (14 references) (LMI)