Based on research selected from a search of the ERIC database, this literature review covers material that concerns academic achievement of retained students, social and psychological effects of retention, and recommendations for educators making retention decisions. After a definition of terms, 31 articles are extensively annotated. Most research suggested that retention did not significantly improve academic achievement. Existing data did not support competency-based promotions. Delay of school entry and use of special transition classes were ineffective in bolstering achievement scores. (RH)