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The possible iatrogenic effects of juvenile justice intervention have been a subject of interest in a fair amount of previous criminological research. Certain data suggest that peer aggregation resulting from out-of-home placement (e.g., incarceration) may increase association with delinquent peers, thereby increasing the risk of future problem behavior. There is reason to believe, however, that such effects may vary according to individual characteristics and by type of placement. In this paper, longitudinal data from the Pathways to Desistance Study (N = 1,354) are used to examine the effects of various types of out-of-home placement on delinquent peer associations and, ultimately, the risk of future offending. In addition, we examine the extent to which such effects are conditioned by individual characteristics. Implications for theory and policy will be discussed.