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This study examines how ethnic diversity influences students’ generalized trust. Using cross-national data from 24 countries, we test the relationship between ethnic diversity in countries and generalized trust among 8th-grade students, taking into account a non-linear relation due to too much diversity effects. Our results from hierarchical linear and non-linear modeling show a positive relationship between ethnic diversity and generalized trust. However, this relationship is inverted U-shaped curvilinear rather than linear. Further, ethnic diversity is found more important for explaining cross-national differences in generalized trust than factors related to economic and political circumstances. At the individual level, this study confirms that civic engagement and interaction with peers and teachers are positively associated with generalized trust.