--- - |2 Abstract Ethnic identity (EI) affirmation has been related to positive academic outcomes for Latina/o youth. However, there is a dearth of research examining mediating mechanisms to this relationship. To address this gap, we examine psychological functioning (depressive symptoms and life satisfaction) as a mediator in the relationship between EI affirmation and academic outcomes (i.e., academic motivation, academic skepticism, and ambition). Participants were 524 Mexican descent adolescents in South Texas. Participants completed a number of self‐report questionnaires to measure each of the variables in the hypothesized model. Results demonstrate that feeling good about one’s ethnic group membership (or having higher EI affirmation) is a strength that not only is related to positive psychological functioning but also promotes positive academic outcomes. Educators and mental health practitioners may benefit from engaging in a curriculum that aims to improve EI affirmation to promote positive psychological functioning, and thus better academic outcomes for Mexican descent youth. - Psychology in the Schools, EarlyView.