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This study presents estimates of the effect of multigrade classes in Portugal on student achievement in 4th grade. The merged national dataset allows us to control for a large set of pupil and teacher characteristics and to include some measures of classroom and peer effects. We estimate the impact of multigrade classes by using a linear model with two dependent measures, the students’ exam scores in mathematics and reading. The results point to a very small, negative effect of multigrade classes on student achievement, once observed characteristics and selection bias are accounted for. In light of the results, implications of preserving or otherwise abolishing this classroom organization in terms of school effectiveness are discussed.