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This study examines why students drop out of school and what can be done about it. After briefly summarizing who drops out of school, the study reviews the theoretical and empirical research that attempts to explain why students drop out of school based on two different conceptual frameworks that are both useful and necessary to understand this complex phenomenon. One framework is based on a perspective that focuses on individual factors associated with dropping out; the other is based on the socio-economic perspective that impacts the contextual factors found in students’ families, schools, communities, and peers. The study also discusses the extent to which these frameworks can be used to explain differences in dropout rates among social groups. It also examines various strategies to address the dropout, reviewing examples of both programmatic and systemic solutions, and the extent to which policy can promote change.