This Digest reviews the historical background on grade retention and promotion and examines research, criteria, and policies concerning these options. The historical overview points out changes in attitudes toward mastery-based promotion and social promotion practices in the schools. Valid and invalid approaches to research on grade retention are pointed out and efforts to develop models of criteria pertinent to retention decisions are reported. Schools having different promotion policies are briefly mentioned and, in conclusion, guidelines for developing a promotion policy are offered. (RH)