Course withdrawals have significant cost and curricular implications for both students and institutions. Yet within the retention literature, little is known about the context or impact of course withdrawals. This study examines course withdrawals of first year students from a sample of nine universities. Data reveal that demographic and contextual factors differentially influence the use of course withdrawals. Further, these data suggest that course withdrawals have negative consequences for second year retention, with nuanced significance when compared to making grades of D or F. We discuss implications for academic advisors, retention specialists, and faculty leaders, as well as policy and future research considerations.