Sexual and gender minority (SGM) youth are at risk of stigma and victimization, which may lead to increased mental health symptoms, including depression, anxiety, and stress. The role of the community in exacerbating or mitigating the frequency of victimization and mental health symptoms among SGM youth has been understudied. Using a minority stress framework, this study examined the association between physical and nonphysical anti‐SGM victimization, perceived community climate, and community size and their effects on depression, anxiety, and stress among SGM youth. An online survey was completed by 296 SGM‐identified youth (aged 14–18 years). Results revealed that nonphysical forms of victimization were associated with depression, anxiety, and stress above and beyond physical victimization and community variables. Both types of victimization were more common in communities that participants perceived to be hostile and small towns. Practice implications include ways to reduce victimization and improve mental health via community climate and community interventions.