Eighty-five predominantly Hispanic students, ages 12 to 18, from Los Angeles area continuation schools participated in this study. Individual interviews were used to obtain information regarding personal and family history, reading achievement, exposure to gang violence, and PTSD symptomatology. Only 12 percent of the subjects reported no exposure to gang violence. Thirty-six percent of the subjects were diagnosed PTSD positive. Statistically significant correlations were found between exposure to gang violence and PTSD symptomatology, and between number of family risk factors and severity of exposure to violence. No significant relationship was found between PTSD symptomatology and a measure of reading achievement. Results suggest that many inner-city youth are exposed to high levels of gang violence and they display significant symptoms of psychological trauma. References, tables, literature review, appendixes