This monograph reviews pertinent research and issues concerning grade retention in an effort to understand the implications for retention and promotion policies, especially in elementary schools. The monograph discusses 11 topics, including: (1) the historical context of retention and promotion; (2) the link between grade retention and dropouts; (3) the number of students retained and their characteristics; (4) financial costs of grade retention; (5) court decisions concerning retention and promotion; (6) analysis of research that indicates disadvantages or advantages of elementary grade retention; (7) methodological problems which cast doubt on most research findings; (8) transition classes as an alternative to retention; (9) dropout and higher education retention literature; (10) implications for policymakers; and (11) reasons that retention practices persist. A list of 63 references is included. (RJC)