Reviews theory and empirical evidence on the effects on Latino youth of acculturation (adapting to a dominant culture) and enculturation (maintaining one’s native culture). The two processes need not be incompatible. Research suggests that retaining a strong sense of ethnic identity while participating in the larger culture may yield the most favorable outcomes. Schools have the power to shape acculturation and enculturation experiences: bilingual programs may alleviate the stress associated with acculturation while programs incorporating cultural diversity in school activities and curriculum may facilitate children’s adjustment. Important goals are: (1) to increase parents’ access to schools, so that both can support each other’s influence over the child; (2) to assist teachers to work effectively with cultural minority groups, including providing bilingual/bicultural aides, training staff about different cultural beliefs and traditions, and finding opportunities to challenge biases; and (3) to promote biculturalism by embracing the notion that Latinos or Hispanics and other ethnic minority students are an important educational resource. These efforts can help bridge the cultural worlds of home and school while simultaneously strengthening both families and youth as they adjust to the new culture.