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Previous research suggests that teacher and student racial incongruence negatively predicts teacher perceptions of student achievement and can have long lasting impact on later achievement. This paper examined whether ethnic identity, previously thought to serve as a mediating factor against discrimination, could serve as a buffer against discrimination associated with teacher student racial incongruence. Using structural equation modeling, teacher and student racial incongruence and teacher perceptions were examined with ethnic identity serving as a mediating variable. Reading and Mathematics achievement scores at age 15 were outcome variables. While ethnic identity did not mediate these effects, Black students who had a Black teacher exhibited a stronger ethnic identity. Findings are discussed regarding restructuring of previous theoretical frameworks and future research.