The transition from adolescence to adulthood is formative for civic development. Unfortunately, many adolescents from Latino and Asian backgrounds experience discrimination, which can alienate them from civic life. This study employed cross‐lagged structural equation modeling to test the bidirectional links between perceived discrimination and civic beliefs and activism among Latino and Asian late adolescents (N = 400, Mage = 17.34, 61% female). Civic beliefs (i.e., believing that the government is unresponsive) and civic activism (i.e., protesting and expressing political opinions) in high school predicted increased perceptions of discrimination over time. Perceiving high levels of discrimination in high school predicted a decrease in the belief that society is fair over time.