This article presents a brief review of key findings from studies in foster care carried out over the last 30 or so years. The main aim is to identify commonalities in findings between different studies that could offer some guidance to practitioners about what seems to lead to successful or negative outcomes. Since Prosser updated the bibliography on foster care research in 1978, major shifts in policy, planning and practice have taken place in relation to the care and treatment of children admitted to local authority care. As a result, foster care seems to have become the preferred method of substitute care. These shifts appear to have been influenced by four major developments: the general move away from institutions towards community care and normalisation; studies highlighting the negative impact on children of residential care, particularly long-term; the apparently successful fostering of some very troublesome adolescents with specially selected, contracted and fee-paid carers; and finally the adverse financial climate of the mid-1970s and the assumed escalating costs of residential care. Though often favoured as the next best thing to a child's own family or adoption, foster care, as we shall see, is not problem-free. Knapp's (1983) studies also showed that, for comparable groups of children, the cost differential between foster and residential care is much narrower than is usually believed.