Research indicates that ethnic identity (EI) protects minority youth on various indicators of adjustment, but with the exception of studies on familial ethnic socialization (FES) there is a dearth of research pertaining to contextual influences on EI development. Using a sample of Mexican-origin adolescent girls, the current study examined best friends’ Mexican cultural orientation as a mediator between FES and EI using a three-wave longitudinal design. Moreover, age and generational differences in this mediation were explored. Analyses revealed that FES promoted adolescent EI 3.5 years later, but that this effect was mediated by best friends’ Mexican cultural orientation. In addition, no significant group differences were found across age or generational status groups, which suggests that the mediational process holds across adolescence and generational statuses. This study highlights the contribution of peer context to EI development and its role in the process by which FES influences EI development during adolescence.