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School decisions on instructional grouping shape students' educational experiences. While the academic effects of tracking are well-known, its impact on socio-emotional wellbeing is less understood. Using administrative data and yearly socio-emotional surveys from four large California districts, we examine how specific tracking dimensions relate to outcomes like academic mindset, self-efficacy, social belonging, and perceptions of school fairness. Multilevel models with extensive controls show that greater ability grouping in math notably affects socio-emotional outcomes, particularly academic mindset. However, tracking features do not significantly impact socio-emotional wellbeing, with effects similar for high- and low-achieving students and schools. This study highlights the diverse effects of tracking on academic and socio-emotional development.