The process of diversion in the juvenile justice system is a function of the transition levels in that system and the array of alternatives available at each of the levels. The full set of levels consists of the police, probation, prosecuting attorney, court, and custodial institution. Release, meaning the young offender is diverted from further movement in the system, is possible at all levels. The chapter describes: two early police diversion programs developed in the 1930s; the influence of labeling theory, a sociological perspective based on the concept that societal reactions to deviance--condemnation and punishment --cause juveniles to be viewed as incorrigible criminals; and three well-established diversion programs. The chapter concludes that diversion has been a thriving enterprise in the 1980s and 1990s and suggests that it must thrive so long as youths in trouble need such services as employment counseling, family counseling, tutoring, substance abuse education, or a relationship with a "big brother or sister." The chapter includes discussion questions based on the information presented. References