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In the U.S., Latinos are one of the lowest attaining groups and report some of the lowest educational expectations. Despite the importance of expectations, few studies have critically examined the factors that influence Latino youths’ expectations. Research investigating the impact of neighborhood context on expectations of Latinos is largely missing from the literature. This study addresses these gaps by examining the relationship between neighborhood context and educational expectations using a nationally representative sample of Latino and white students. Results suggest that incorporating measures of exposure and neighborhood disadvantage to the understanding of educational expectations is needed. Furthermore, by interacting neighborhood characteristics and sex, this study points to the role that sex plays in how adolescents respond to their environment.