The Holding Dimension was a prison dimension where Wolfram & Hart's Senior Partners placed inmates whose fates had not been decided. It could be accessed through an automated Camaro that drove itself to a portal leading to the dimension. This dimension resembled an American suburban town and its sunlight did not injure vampires.
The Prisoners placed in this holding dimension were stripped of the memory of their past and identities, given new ones through a necklace they were forced to wear, and lived the same day over and over. They would wake up and spend a few minutes with a fake family, then go down into their houses' basement, where they were tortured by a demon that cut out their hearts. Afterwards, the wound was regenerated and the process started all over again. 
Once someone entered, the only way out was to pass through the Wrath, a portal hidden within the furnace of each house. It was mystically bound to only be activated when someone was wearing the necklace, thus preventing escape for a captive.
Should someone attempt to escape the dimension by removing the necklace, all of the citizens within, as well as the basement demon, turned violent against the attempted escapee and accomplices. Placing the necklace on someone would placate these citizens and open the portal out of the dimension, thus ensuring that a captive always remained.
One way to escape was if a person could place the necklace onto the torturer demon, so it would become both resident and torturer, forcing it to cut its own heart out.
- Angel (visitor)
- Charles Gunn (prisoner)
- Marcus Hamilton
- Illyria (visitor)
- Lindsey McDonald (prisoner)
- Spike (visitor)
- Ice cream guy
- Holding Dimension demon