This study investigated religious stress, gay‐related stress, sexual identity, and mental health outcomes in lesbian, gay, and bisexual (LGB) adolescents and emerging adults. The model examined negative LGB identity as a mediator of the relationships between (1) religious stress and mental health, and (2) gay‐related stress and mental health. The data indicated that negative LGB identity fully accounted for both relationships. Findings suggest that a negative sense of sexual identity for LGB youth helps explain the links between religious and gay‐related stressors and mental health. As LGB youth may have limited control over these stressors, the importance of helping LGB youth maintain a positive LGB identity, despite homonegative messages from others, is discussed.