There is a growing body of literature on the neighborhood context and its impact on outcomes in minority youth. This study focused on the relationship between neighborhood factors such as diversity and cohesion and ethnic-racial identity while examining the mediating role of ethnic-racial socialization in the perceived relationship. The study utilized data from African American (N = 68, M = 13.65, SD = 1.87) and Latinx adolescents (N = 64, M = 13.05, SD = 1.86) in the Families, Adolescents, and Neighborhoods in Context (FAN-C) study to examine these relationships between neighborhood diversity and social cohesion on ethnic-racial identity as well as ethnic-racial socialization as a mediator of this relationship. Neighborhood social cohesion was found to be correlated with ethnic-racial socialization and ethnic-racial identity. Gender and ethnic differences emerged in the correlations between ethnic-racial socialization and ethnic-racial identity. Among Latinx adolescents, cultural socialization was positively correlated with centrality and private regard. However, contrary to what was hypothesized, ethnic-racial socialization did not mediate the relationship between the neighborhood context and ethnic-racial identity. Future research should examine other potential roles of ethnic-racial socialization in the relationship between the neighborhood context and ethnic-racial identity.