The recommendation forms part of the Care Commission's reports into care, after care and mental health and wellbeing services provided by Scotland's 240 care homes, residential special schools and secure accommodation.
Although the report said 96 per cent of staff are good at providing comfort and appropriate support to distressed young people, it also revealed that half of service providers were not adequately helping young people to leave care.
It also said more than half needed to improve the way young people's mental health needs were assessed at their point of admission to care.
Ronnie Hill, the commission's director of children's services regulation, said it was important to stress that overall, services provided to children in care were good in most areas.
He said: "Research has shown that young people in care, particularly those still in their teens and who move to independent living, are doing less well than their peers.
"In order to begin to turn this around, young people need to be appropriately supported, not just while they are living in a service but after they have left as well.
"We're concerned, therefore, that almost half the residential services we monitored needed to improve their ability to help and support young people when they move on."
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