Extensive research has examined the validity and fairness of standardized tests in academic admissions. However, due to their underrepresentation in higher education, American Indians have gained much less attention in this research. In the present study, we examined for American Indian students (1) group differences on SAT scores, (2) the predictive and incremental validity of SAT over high school grades, (3) the effect of socioeconomic status on SAT validity, (4) differential prediction in the use of SAT scores, and (5) potential omitted variables that could explain differential prediction for American Indian students. Results provided evidence of predictive and incremental validity of SAT scores, and the validity of SAT scores was largely independent of socioeconomic status. Overprediction was found when using SAT scores to predict college performance and it was reduced when including high school grades as an additional predictor. This study provides substantial evidence of the validity and fairness of SAT scores for American Indians.