The study looked at the mental health of 97 young men aged 12 to 17 as they entered custody and again three months later.
The average number of mental health needs at admission was 8.5, falling to 2.9 after three months, which researchers said was the result of improved access to services.
But researcher Sue Bailey, professor of child and adolescent forensic mental health at the Royal College of Psychiatrists, said: "We need a complete look across education, health, social care and the youth justice sector to see if problems can be picked up earlier."
The findings, due out in March, are part of an ongoing 1.3m study for the Youth Justice Board that started in 1998, conducted by the University of Central Lancashire, the University of Manchester and the Royal College of Psychiatrists.
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