This paper explores some issues related to residential services for adolescents. As the passage of several child and youth welfare legislation in the past decade, out-of-home placement has been designed as one of the service provisions for the youth. Since residential services has been proposed as the major mean for out-of-home placement, several issues about residential care arise: Is residential care best seen as a substitute for a family that has failed, or as a support for a family in crisis? Further, what a residential care would be like while it has been practiced as a mandated service? How the youth and professional workers perceive it as the helping process instead of as the punitive measures? To examine these issues, this paper first analyzes the characteristics of residential care services that have been mandated by three major Youth Acts in Taiwan. Next, the assumptions underlying in residential care are explored, in particular, with regard to the practical and ethical problems in practice. Finally, recommendations are provided to develop social work interventions for the troubled youth.