Many adolescents feel they are subjected to acts of discrimination. Research shows that discrimination is associated with adverse outcomes including poor psychological adjustment, school adjustment, and academic achievement. This study investigated alternative pathways through which discrimination affects adolescents' academic achievement. A sample of 244 Year 7–10 Australian secondary school students (65% male; Mage = 13.6 years; SD = 1.24) completed questionnaires measuring discrimination, psychological adjustment, and sense of school membership. Both at the time of questionnaire completion and one semester later, absenteeism data, teacher ratings of classroom behavior, and academic grades were retrieved from school records. The fit of four competing structural models were compared. In the best fitting model, the effects of prior discrimination on academic achievement one semester later were serially mediated, first through psychological adjustment, and then through school adjustment. By elucidating these mechanisms, the study informs theory and practice regarding the effects of discrimination on adolescents.