This article addresses the role of friendship dynamics among newcomer Latin American migrant youth during their transitions to Chilean secondary schools. Drawing on qualitative life history interviews, we discuss ethnic minority well-being in two high-ethnic mix schools, and how power inequalities and racial discrimination are managed through social capital in the courtyard. In particular, we demonstrate the importance of ethnic diversity for counteracting victimization. We found few instances of internal segregation (homogenous or bonding forms of friendship groups); instead cross-ethnic friendships were more common, enabling participants to navigate gendered and class-based cleavages within the schools. Although concentrations of ethnic students in low-quality municipal schools represent deeper social justice issues, the research argues for the need to move beyond dichotomized notions of integration and segregation. Creating greater equity in these spaces, we suggest, does not depend on ethnic mix, but on the opportunities to develop social capital support.