The current study examines whether daily coping moderates the effects of daily stress on same‐day mood and next‐day mood among 58 Latino adolescents (Mage = 13.31; 53% male). The daily diary design capitalized on repeated measurements, boosting power to detect effects and allowing for a robust understanding of the day‐to‐day experiences of Latino adolescents. Hierarchical linear modeling revealed that on days when youth reported higher levels of peer and academic stress, they also reported more negative moods. However, only poverty‐related stress predicted mood the following day. Engagement coping buffered the effect of poverty‐related stress on next‐day negative and positive mood, while disengagement exacerbated the effects of academic and peer stress. The need for interventions promoting balanced coping repertoires is discussed.