This emergent theory describes the relationships and factors within the context of home, school, and community that enabled six Hispanic students to participate in an advanced diploma program. The research is in keeping with the mandates from several federal initiatives to develop "asset-based" paradigms for educating Hispanic youth. Grounded theory and ethnographic methodologies were used in collecting the data from the purposive sample. Several sub-factors emerged, that served to describe, explain, and predict the development of the Hispanic Academic Advancement Theory. Those subfactors will be explained and implications of the findings on the education of Hispanic students will be discussed.