Abstract Prior research has documented meaningful differences between school performance of immigrant and native students. Multicultural education has been associated with academic failure of foreign students. The aim of this study was to examine the impact of a set of psychosocial variables on the perceived academic achievement of first generation immigrant adolescents from public secondary schools in Northern Spain. Results showed that 46% of the variability in foreign students' perceived academic performance was explained by home-school cultural dissonance. We also explored the impact of acculturation orientation to separation, perception of discrimination from teachers, school adjustment, and psychological well-being in academic performance. Any multicultural education context should take into account psychosocial adjustment, given its influence on academic performance of all students.