The impact of misspecifying covariance matrices at the second and third levels of the three-level model is evaluated. Results indicate that ignoring existing covariance has no effect on the treatment effect estimate. In addition, the between-case variance estimates are unbiased when covariance is either modeled or ignored. If the research interest lies in the between-study variance estimate, including at least 30 studies is warranted. Modeling covariance does not result in less biased between-study variance estimates as the between-study covariance estimate is biased. When the research interest lies in the between-case covariance, the model including covariance results in unbiased between-case variance estimates. The three-level model appears to be less appropriate for estimating between-study variance if fewer than 30 studies are included.