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This study examines the effects of perceived racial discrimination in school on academic motivation and achievement of African American and European American adolescents. Cross-sectional effects in middle and high school and longitudinal effects of discrimination in middle school on academic motivation in high school were analyzed. Results indicated that perceived racial discrimination negatively affected academic self-concept, academic importance, and utility of schooling in middle school and partially in high school for both ethnic groups. In addition, discrimination in middle school predicted academic motivation in high school, particularly indirectly through prior motivation, suggesting long-term consequences. Mediated through academic motivation, discrimination also affected adolescents' grades. The findings highlight the importance of addressing racial discrimination to promote positive academic motivation among all students.