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This study aims to identify the causal effect of schools on bullying and, in turn, the effect a reduction in bullying on students’ educational outcomes. I leverage detailed longitudinal data on students and schools in Chile to document these effects. Using a value-added approach, I show there is variation in whether schools increase bullying relative to other schools. This suggests that schools affect students’ bullying experiences. Second, I show that attending a school that increases bullying has negative consequences for students’ victimization, test scores, attendance, and dropout rates. Finally, I examine the characteristics of schools that reduce bullying. Thus, I provide evidence that schools play a role in reducing bullying and that bullying takes a toll on students’ educational outcomes.