© Australian Council for Educational Research 2016. This article reviews the international literature about streaming and the effects of this practice on the learning outcomes for secondary school students in Australia. Streaming in secondary schools across Australia has again increased in popularity after more than a century of literature that often discourages the practice. This article discusses the practice of streaming and its effect on students' academic, social and psychological learning outcomes and how teachers may mediate these effects. In addition, the article examines the extent to which the various outcomes of streaming align with the Australian National Curriculum and with the Organisation for Economic Cooperation and Development's recommendations for promoting equity and quality in education. While research is contentious and often contested, the literature generally shows that streaming impacts negatively on student learning outcomes. The findings of this literature review suggest the need for more research within the Australian context about how teachers' perspectives of streaming influence learning outcomes and how streaming influences minority and disadvantaged groups in Australia.