Disproportionately high rates of Conduct Disorder are diagnosed in African American and Latino youth of color. Diagnostic bias contributes to overdiagnosis of Conduct Disorder in these adolescents of color. Following a diagnosis of Conduct Disorder, adolescents of color face poorer outcomes than their White counterparts. These negative outcomes occur within mental health and juvenile justice settings. The aims of this article are to: (a) identify the factors that contribute to overdiagnosis of Conduct Disorder in adolescents of color, (b) discuss the associated negative outcomes, and (c) provide recommendations for culturally sensitive diagnosis of adolescents of color with conduct problems in order to reduce overdiagnosis. Clinical and research implications will also be presented.