An intensive day treatment (DT) program was established to serve adjudicated delinquents who would otherwise have been placed in residential treatment (RT) or who were already in residential treatment but could be returned home early and placed in DT for the duration of their care. The DT program permits juveniles to remain in their home schools and in their own or foster homes during placement. The evaluation, which was conducted during the first 2 years of the DT operation, examined whether juveniles placed in ID and RT differed significantly prior to admission; whether juveniles in ID and RT differed in the frequency with which they remained in or were returned to their family homes; and whether juveniles in DT and RT differed in continued school attendance or completion, the number of posttreatment offenses, and the overall impact of treatment on behavior. All juveniles discharged from either RT or DT during 22 months and who were between the ages of 12 and 19 years old at the time of discharge were included in the study. Eighty-one DT subjects and 168 RT subjects were selected. Data were obtained from the public department's computerized information system to determine demographics and replacement following discharge. Probation officers or social workers active with the juveniles completed questionnaires on the cases. RT and DT subjects achieved similar outcomes, suggesting that DT produces similar results to RT at a lower cost. The study discussed how evaluation results were used in policy decisionmaking. 6 tables and 6 references.