This study estimates the acute effect of exposure to a local homicide on the cognitive performance of children across a community. Data are from a sample of children age 5–17 y in the Project on Human Development in Chicago Neighborhoods. The effect of local homicides on vocabulary and reading assessments is identified by exploiting exogenous variation in the relative timing of homicides and interview assessments among children in the same neighborhood but assessed at different times. Among African-Americans, the strongest results show that exposure to a homicide in the block group that occurs less than a week before the assessment reduces performance on vocabulary and reading assessments by between ∼0.5 and ∼0.66 SD, respectively. Main results are replicated using a second independent dataset from Chicago. Findings suggest the need for broader recognition of the impact that extreme acts of violence have on children across a neighborhood, regardless of whether the violence is witnessed directly.