Peer victimization is a well‐established risk factor for children's adjustment, but it has rarely been studied as a feature of classroom climate. This study examines the consequences of classroom victimization for children's social and academic adjustment. Classroom victimization, social functioning, and academic adjustment were assessed in two subsamples taken from a full sample of 523 children nested in 28 classrooms, followed over the course of a school year. Results from a subsample of 213 students suggested that higher classroom levels of victimization predicted attenuated growth in children's reading achievement as well as greater stability of reading achievement over the course of the year. Results from a subsample of 490 children suggested that lower levels of classroom victimization predicted reduced stability of peer social preference and mitigated the trajectory between children's externalizing behavior and poor social preference. Implications for prevention of and interventions targeting peer victimization are discussed.