Identity development is a dynamic process which involves reconciling multiple messages. While ethnic minority adolescents' development is affected profoundly by discrimination, positive racial/ethnic encounters can also transform one's identity. Questionnaire data were gathered from 122 tenth-grade Mexican Americans in a low-performing school that had over 60% "Hispanic" students. Based on the data, 12 second-generation youth were selected for interviews based on their level of academic engagement and experiences with negative racial/ethnic encounters in school. Interviewees' descriptions of positive encounter experiences revealed ways in which schools can reinforce equal status and integrate Mexican American youth. Youth felt a renewed commitment to their ethnic selves when they participated in events that they perceived as dispelling stereotypes and when they had concrete experiences in which their bilingual competence was perceived as an asset. This qualitative study identifies avenues for future research on positive racial/ethnic encounters and academic engagement. (Contains 2 tables.)