While past research has focused on how student background characteristics and university experiences predict student retention and achievement, very few studies have examined the role that student-institution "fit" might play in this process. In this study, we developed and validated a student-institution fit instrument that assesses the correspondence between student and institutional characteristics. We then examined the extent to which student-institution fit and friendship groups predict indicators of student success (e.g. academic adjustment and disengagement), which in turn predict future intentions. Using independent samples of undergraduate students from two Australian universities, exploratory and confirmatory factor analyses provide evidence for a unidimensional model of student-institution fit. Moreover, structural equation modelling analyses indicate that student-institution fit predicts greater academic adjustment and less disengagement, which in turn predict intentions regarding retention, transferring to another university, and changing major or career choice.