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Three aspects of racial‐ethnic identity (REI)—feeling connected to one's racial‐ethnic group (Connectedness), being aware that others may not value the in‐group (Awareness of Racism), and feeling that one's in‐group is characterized by academic attainment (Embedded Achievement)—were hypothesized to promote academic achievement. Youth randomly selected from 3 low‐income, urban schools (n=98 African American, n=41 Latino) reported on their REI 4 times over 2 school years. Hierarchical linear modeling shows a small increase in REI and the predicted REI–grades relationship. Youth high in both REI Connectedness and Embedded Achievement attained better grade point average (GPA) at each point in time; youth high in REI Connectedness and Awareness of Racism at the beginning of 8th grade attained better GPA through 9th grade. Effects are not moderated by race‐ethnicity.