Children who experience stunted growth at any point are at a higher risk of repeating grades in school and more likely to drop out. Early dropouts not only hinder the development of important skills and educational milestones, but they also limit earning potential as adults. Compounding this challenge, repetition of grades imposes costs on the education system. This policy brief highlights key findings from “Economic Loss from School Dropout and Grade Repetition due to Malnutrition in Lao PDR”