This paper addresses contradictions between common perceptions of Asian Americans as a "model minority" and growing evidence of discrimination and its negative psychological implications for this group. The current study examined Chinese American early adolescents' distress from experiences of discrimination, its relationship with mental health and social functioning, and what factors may support their healthy development in the face of discrimination. The sample consisted of 158, 6th-8th grade, Chinese American youth. Study findings provided evidence for a relationship between distress from discrimination and social emotional health variables of depression and cooperation (a social competence construct). Results also revealed that peer support buffered the negative effects of discrimination on cooperation. These findings highlight the interpersonal context of discrimination among early adolescents, and the importance of developmentally and culturally appropriate supports.