Protective effects of ethnic identity on daily psychological well-being were examined in a sample of 415 ninth graders from Mexican and Chinese backgrounds. Utilizing daily diary assessments and multilevel modeling, adolescents with a greater regard for their ethnic group exhibited greater levels of daily happiness and less daily anxiety averaged over the 2-week study period. Ethnic regard moderated the daily association between normative stressful demands and happiness, and between stressful demands and happiness experienced 1 day after stressors occurred. Moderating effects were significant even after controlling for self-esteem. Although no buffering effects of ethnic centrality were found, the results point to the positive influence of ethnic regard in the daily lives of adolescents from ethnic minority backgrounds.