Depression in urban Hispanic adolescents can have negative influences on their ability to acquire a sound education. This study was conducted on 191 urban Hispanic adolescents ages 13-18. The findings indicated that (a) Hispanic females were more depressed than Hispanic males, (b) 42% of the participants had been retained a grade, (c) 7% had received an official diagnosis of depression in comparison to the 12% that were found to be severely depressed in this study, (d) there was a strong relationship between self-esteem and depression, (e) sources of self-esteem came from placement in a grade with same age peers, and (f) the source of self-esteem for females was most related to body image. Managing Hispanic students' educational and mental health needs is critical to assure this group's participation in the future democratic processes of work and education. The purpose of this study is to investigate how depression, self-esteem and repeating a grade can affect achievement in school. It also presents educators and mental health workers with strategies to help Hispanic youth avoid depression and increase their rates of graduation. (Contains 2 tables.)