["Journal of Traumatic Stress, EarlyView. ", "\nAbstract\nTransgender and nonbinary individuals (TNBI) face disproportionate exposure to identity‐based discrimination and violence, yet limited research has examined how discrimination prospectively influences trauma adaptation. This longitudinal study examined predictors of posttraumatic stress disorder (PTSD) symptom adaptation among TNBI (N = 75, Mage = 30.6 years, 48.0% White, 44.0% nonbinary, 77.3% met PTSD criteria) with past‐year DSM‐5 Criterion A trauma exposure who completed structured diagnostic interviews and daily diary assessments at baseline and 3‐, 6‐, and 12‐month follow‐ups. Mixed linear modeling was used to estimate PTSD adaptation as a function of trauma characteristics and gender minority stress/resilience. A small, significant PTSD symptom reduction was observed over time, B = ‐0.44, p < .001. Average PTSD symptoms over time were significantly higher for participants with greater gender nonaffirmation exposure, B = 0.43, p = .039, and those who met the criteria for a mood disorder, B = 10.70, p < .001, at baseline. Participants whose “worst” trauma exposure entailed interpersonal violence, B = 9.26, p = .009; were revictimized, B = 7.83, p = .006; and experienced higher exposure to daily discrimination during the follow‐up period, B = 0.52, p < .001, demonstrated significantly higher average PTSD symptom severity over time. Unexpectedly, identity pride was associated with significantly higher PTSD symptoms over time, B = 0.36, p = .031, whereas community connectedness was marginally associated with lower symptoms, B = ‐0.57, p = .054. Findings underscore the roles of identity affirmation, discrimination, and revictimization in shaping TNBI trauma adaptation.\n"]