This study demonstrated that the high rates of negative outcomes for lesbian, gay, and bisexual (LGB) and questioning students might be preventable with a positive school climate and absence of homophobic teasing. All the children in the study, regardless of sexual orientation reported the lowest levels of depression/suicidality, the lowest levels of alcohol/marijuana use, and the lowest levels of truancy when in a positive school climate and when not experiencing homophobic teasing. It was suggested that schools with low homophobic teasing and a positive school climate would drastically reduce the prevalence of negative outcomes in LGB youth. The vast amount of negative outcomes in LGB and questioning youth and the preliminary literature on homophobic school climates require a better understanding of the school environment and its role in either protecting or harming students. This study of 7,376 seventh and eighth grade students from a large Midwestern county, examined how school contextual factors, such as school climate and homophobic teasing affect drug use, depression/suicidality, and truancy among LGB, sexually questioning, and heterosexual youth. Table, figures, and references