Although accurate statistics on the characteristics of youth processed by the juvenile justice system are not available, new evidence extracted from court records indicates that the juvenile justice system is prejudicial against minorities. Court involvement is preceded by the arrests and detention of disproportionate numbers of minority youth. Most juvenile court personnel lack knowledge and sensitivity regarding the nature and impact of the lifestyles of disadvantaged youth and their families. Court personnel tend to be judgmentally harsh and punitive toward those who have deviated from their own middle class values. In addition, dispositions are limited not only by judicial frames of reference but also by the limited battery of disposition options. Moreover, disadvantaged youth, while having court-appointed legal representation, appear to lack committed and competent legal representation. Incentives for the court to provide such representation are few. The limited data available also suggest the discriminatory use of transfers to adult criminal court. The first step toward reform of the juvenile justice system must be a refinement of information systems, so that accurate data can form the basis for a definitive analysis of how the system currently makes decisions respecting disadvantaged youth. Specific recommendations for reform in the areas discussed are listed, and guidelines are appended for law enforcement agencies' handling of all juvenile offenders under Title III, Family Code.