This chapter describes residential care in the Netherlands, a country ranking highest on children’s mental well-being, physical health, and academic and social skills. Residential care represents approximately 50% of all children in out-of-home care. Recent developments include the development of small-scale residential settings, including family-oriented residential care and shared family care. A strong emphasis on residential care research in several leading universities and a longstanding commitment to social pedagogy are assets to the residential care sector. The chapter concludes with the matrix used throughout the book, including the current policy context, key trends and initiatives, characteristics of children and youth served, preparation of residential care personnel, promising programmatic innovations, and present strengths and challenges.