BACKGROUND We assessed the associations of 5 school and 7 neighborhood variables with fifth‐grade students achieving Healthy Fitness Zone (HFZ) or Needs Improvement‐Health Risk (NI‐HR) on aerobic capacity (AC) and body composition (BC) physical fitness components of the state‐mandated FITNESSGRAM® physical fitness test. METHODS Data for outcome (physical fitness) and predictor (school and neighborhood) variables were extracted from various databases (eg, Data Quest, Walk Score®) for 160 schools located in San Diego, California. Predictor variables that were at least moderately correlated (|r| ≥ .30) with ≥1 outcome variables in univariate analyses were retained for ordinary least squares regression analyses. RESULTS The mean percentages of students achieving HFZ AC (65.7%) and BC (63.5%) were similar (t = 1.13, p = .26), while those for NI‐HR zones were significantly different (AC = 6.0% vs BC = 18.6%; t = 12.60, p < .001). Correlations were greater in magnitude for school than neighborhood demographics and stronger for BC than AC. The school variables free/reduced‐price lunch (negative) and math achievement (positive) predicted fitness scores. Among neighborhood variables, percent Hispanic predicted failure of meeting the HFZ BC criterion. CONCLUSIONS Creating school and neighborhood environments conducive to promoting physical activity and improving fitness is warranted.