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The initiation of substance use often occurs during youth, yet there remains considerable ambiguity surrounding how usage patterns develop. Recent shifts in narcotics-related policies and policing may influence this development. Patterns of substance use among youth in Oslo, the capital of Norway, vary significantly both between neighborhoods and schools. However, the relative importance of the two clusters in substance use socialization has, so far, only been studied for alcohol use. This study employs cross-classified multilevel models (CCMM) to investigate substance use patterns among senior high-school students in Oslo, drawing on a 2023 population-based sample of 10,595 participants. The analysis incorporates explanatory variables spanning diverse socio-ecological levels, with a specific emphasis on the impact of neighborhood socio-economic resources and peer-driven sociocultural processes linked to the Norwegian high school graduation celebration. Results underscore the paramount importance of the school milieu and peer environments in shaping substance use behaviors among youth, highlighting this as vital when designing prevention efforts.