Included in this review of the literature on grade retention are annotations for 13 articles supporting nonpromotion policies, 13 articles refuting nonpromotion policies, and 5 articles arguing that both policies result in undesirable consequences. Articles are identified as being: (1) original research comparing students retained with students promoted; (2) original research comparing retained students' achievement before and after retention; (3) true experimental designs comparing the achievement of randomly promoted or retained students who were all potential retainees; or (4) nonoriginal research such as literature reviews and summaries of school programs. Results are summarized in the final section. It is concluded that, while social promotion has been a major contributing factor in the graduation of unskilled high school students, most teachers are correct in their reluctance to retain a student in grade. Besides retention's having negative social effects, the student often receives no special help and merely repeats his original bad experience. While funding may be difficult to obtain, mimimum standards of achievement should be developed for grade promotions and high school graduation, and remedial bridging programs should be established for students who fall below minimum levels. Special provisions must be made for handicapped children, and extra care must be taken in developing minimum competency tests. (CB)