The study aimed at establishing pupils’ perceptions towards grade retention and its effects on academic performance in selected grant-aided secondary schools in Central province of Zambia. The study used a case study research design which combined qualitative and quantitative techniques of data collection and analysis. The target sample comprised all pupils, guidance and counselling teachers and deputy head teachers of the selected grant-aided secondary schools. The data were collected through questionnaires, interview schedules and analysis of pupil’s progress record cards. Qualitative data were analysed thematically through identification of themes that emerged from data. The Statistical Package for Social Sciences (SPSS 20.0) was used to generate descriptive statistics such as frequencies, percentages or tables The study revealed that most of the pupils in grant-aided secondary schools perceive grade retention as something that is good. The positive perception can mainly be attributed to the high levels of awareness among pupils about the existence of the policy, parental involvement and vigorous counselling programmes among other factors. Based on the findings, the study recommended that School authorities in grant-aided secondary schools should encourage teachers to enhance studying of pupils in mixed ability-groups as a strategy to foster sharing of knowledge.