Previous studies reach contradictory conclusions regarding the relationship between residential concentration and naturalization. This paper tackles the impasse by exploring the pathways through which immigrant communities influence individual naturalization. Specifically, this study examines naturalization among Latino immigrants using the 2006 Latino National Survey linked to county data. Multilevel model results indicate that the county concentration of naturalized co‐ethnics positively predicts individual naturalization, and this relationship operates through two channels: information dissemination and perceived belonging. Regarding the latter, Latino immigrants who live among naturalized co‐ethnics identify more strongly as “American,” and strength of American identification mediates nearly one‐half of the relationship between concentration and naturalization.