Documented associations between academic and social functioning have been inconsistent. These discrepancies may reflect the moderating role of sociocultural context. In this study, we examined ethnicity and gender as moderators of this relation. We collected peer nominations, GPA from school records, and self‐report questionnaires for 519 Vietnamese‐American and Mexican‐American middle school students (mean age = 12.7 years). Using general linear modeling, we found that academic and social functioning were more strongly and positively linked for Vietnamese‐Americans relative to Mexican‐Americans, and for girls relative to boys. We also examined group differences in achievement values, and found that Vietnamese‐Americans were more likely to admire and be friends with high‐achieving peers. The results suggest that peers provide one context in which ethnic and gender differences in achievement values emerge, and interventions aimed at reducing the achievement gap may benefit from incorporating a focus on peers.