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As the United States and its public schools continue to racially diversify, the need to understand how racially heterogenous environments impact development becomes increasingly important. Using a path analysis, the impact of school-level racial diversity on adolescent wellbeing was explored. Results from the 5Essentials Survey administered across Chicago Public schools were used to measure student peer relationships, emotional health, school safety, and school connectedness. Demographic data were used to construct a path analysis of the degree of racial diversity across all high schools within Chicago Public Schools. Findings indicate that racial diversity had positive effects on student peer relationships. Racial diversity was not associated with any negative impacts on the variables of interest.