Highland Council says its enhanced placement programme for looked-after children has resulted in improved outcomes for the youngsters and avoided out-of-authority costs of more than £5m.
The programme has seen 34 young people return to Highland since June last year.
Most went into residential units, with others going to supported flats, kinship and foster care, or adult services.
One person left the care system altogether.
Councillor John Finlayson, chairman of the care, learning and housing committee, said: “The ethos driving the placement programme is to provide alternative services which enable young people to remain as close to their communities in Highland as possible.
“One of the most compelling outcomes of the programme is significantly improved outcomes for Highland’s care experienced young people who have returned to area.”
The council says that shortly after returning, some have been found to be intellectually more able than identified over several years out of area; and some have accelerated their developmental age.
One youngster’s level of violence and aggression was down by 80%.
Another said he was thriving and participating in many community activities since returning to the Highlands, while others showed improved educational attendance and enjoyment.
In order to meet the future responsibilities detailed in the Children and Young People (Scotland) Act, the council is focusing its efforts on acquiring a more varied stock of properties and services to meet the needs of looked after young people in the Highland area.
A business case is also being prepared to review fostering and adoption fees/allowances which will be detailed in a report to the Highland Council meeting in October 2019.