The present meta-analysis examined the effect of grade retention on academic outcomes and investigated systemic sources of variability in effect sizes. Using multi-level modeling, we investigated characteristics of 207 effect sizes across 22 studies published between 1990 and 2007 at two levels: the study (between) and individual (within) levels. Design quality was a study-level variable. Individual level variables were median grade retained and median number of years post retention. Quality of design was associated with less negative effects. Studies employing middle to high methodological designs yielded effect sizes not statistically significantly different from zero and 0.34 higher (more positive) than studies with low design quality. Years post retention was negatively associated with retention effects, and this effect was stronger for studies using grade comparisons versus age comparisons. Results challenge the widely held view that retention has a negative impact on achievement. Suggestions for future research are discussed.