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By referring to PISA 2009 data and a qualitative research project, this paper seeks to examine how in-grade retention could serve as a mechanism reproducing educational inequality in Macao. Grade retention is rampant in Macao’s school systems. As many as 40% of students were ever retained. Our analysis suggests that retention does not happen randomly: male/disadvantaged-class students are much more likely to be retained. Our interview with students and teacher suggests that school-level policy leaves teacher with decision of retaining students. Many teachers link retention with student behavior instead of academic performance and therefore singling out certain groups of students as disruptor of the classroom.