This chapter reviews the relevant literature pertaining to the work of school psychologists in residential treatment settings and critically discusses their role and function in such settings. The school psychologist working in a residential treatment facility is frequently part of a team concerned with the assessment and diagnosis of clients of their organization. The use of consultation approaches in school psychology developed largely within the context of the community psychology movement and as a result of a growing disenchantment with traditional forms of school psychological services. School psychologists, like other professional psychologists who are educated within the framework of a scientist-practitioner model, are trained in both research methodology and the conduct of psychological research. As part of their professional training, school psychologists are systematically exposed to the concept of ethics and ethical treatment practices as outlined by the American Psychological Association.