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Based on the theoretical arguments of the context-dependent mechanisms of religion as a "bridge" or "barrier" for immigrant outcomes, this study examines the functional role of religiosity of Muslim second generation high school students on school outcomes in Germany. Using data from the Children of Immigrants Longitudinal Survey in Four European Countries (CILS4EU), this study analyzes the influence of religious variables and the presence of religious peers on students' school performance through multilevel modeling. Results indicate that although Muslim students have lower school grades than their non-Muslim counterparts, the presence of religious peers has positive effects for the outcomes of nominal Muslims, i.e. Muslims who are not religiously active. Findings of this study partially confirm and partially refute the notion of religion as a "barrier" in Western European contexts.