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Poor and Black adolescents perpetrate more violence, often linked to neighborhood resource inequalities, but explanations remain mixed. Moving beyond neighborhoods, we explore how school dynamics shape adolescent violence. We do so with longitudinal data from the Project on Human Development in Chicago Neighborhoods (1995-2001) linked to Chicago Public Schools survey data (1994-1999). We find that exposure to higher poverty schools increases adolescents’ violence and mediates the deleterious association of neighborhood disadvantage and the Black-White gap in violence. Furthermore, exposure to schools high in collective efficacy—where trust and collective responsibility among teachers and parents is extensive—reduces violence and the consequences of school poverty. These findings suggest that social capital dynamics anchored on schools are key to reducing adolescent violence.