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The role of the juvenile justice system is to rehabilitate youth by providing structure, addressing their needs, and increasing public safety. To provide effective and economical services to youth and the community, it is important to understand the characteristics of those sent to residential placement and the extent to which residential placement reduces future crime. This study examined the predictors of residential placement and the effectiveness of residential placement using a large, archival dataset of juveniles sent to residential (n = 505) and youth on probation who never received residential placement (n = 1,878). Effectiveness of residential placement was determined by examining one- and two-year recidivism rates. Understanding who is sent to residential placement and the effectiveness of the treatment has the potential to help juvenile justice researchers and practitioners guide rehabilitative efforts for youth. Directions for future research and implications for policy and practice will be discussed.