Youth from disadvantaged neighborhoods have been found to have greater rates of justice system involvement than other youth, as well as differential treatment at multiple points in the justice system process. This neighborhood disproportion stems from different rates of lawbreaking and system bias and has important implications for long‐term negative outcomes associated with juvenile justice contact. Clarity in the state of knowledge on this topic is essential to guide researchers and policymakers in addressing this critical issue. Toward these ends, we review the literature on neighborhood disproportion in juvenile justice contact, suggest directions for continued inquiry, and discuss policy implications.