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Ability grouping is a policy widely implemented in various places, but its effect is controversial. This study uses the data of a follow-up survey project implemented on Chinese junior high school students, using propensity score matching, regression analysis and mediating effect analysis to explore the relationship between ability grouping, differential teacher treatment and student achievement. For overall student achievement, the effect of between-class ability grouping was not significant. However, the effect of between-class ability grouping is positive for students with learning difficulties, but negative for top students. The results of the mediating effect analysis show that between-class ability grouping aggravates differential teacher treatment and reduces achievement, especially for students whose achievement is at a higher level in the school.